Profit margin and markup calculator
Enter a product’s cost and selling price to get profit, margin and markup as three separate results, because confusing margin with markup is one of the most common pricing mistakes. It works as a quick margin calculator and markup calculator in one, with every formula shown.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter the cost of one product, including everything you pay to obtain it.
- Enter the selling price before tax.
- Pick a currency for display only; it does not change the maths.
- Read the three results and copy them if you like.
Example
Cost 80 and selling price 100: profit is 20, margin is 20% because 20 ÷ 100 = 0.20, and markup is 25% because 20 ÷ 80 = 0.25.
Margin is measured against the selling price and markup against the cost, so markup is always the larger figure when you make a profit.
Limits and caveats
- The calculation covers one product and excludes shipping, platform fees and tax. Use the selling-price calculator to include those.
- With a selling price of zero the margin is undefined, and with a cost of zero the markup is undefined. The tool says so instead of showing a misleading number.
- Results are displayed rounded to two decimal places.
Questions about this tool
What is the difference between margin and markup?
Margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. Both describe the same profit with a different denominator.
Can margin be more than 100%?
No, as long as cost is not negative. Markup can easily exceed 100%: a 100% markup equals a 50% margin.
Are my numbers stored?
No. The calculation runs inside your browser and the numbers are not sent to any server.
How do I calculate profit margin?
Profit margin is profit divided by the selling price, times 100: (price − cost) ÷ price × 100. With a cost of 80 and a price of 100, profit is 20 and the margin is 20 ÷ 100 × 100 = 20%. Enter the two figures and the calculator shows the profit, the margin and the markup at once.
What selling price gives me a target profit margin?
Divide the cost by (1 − target margin ÷ 100). For a cost of 80 and a 20% margin, 80 ÷ 0.80 = 100. This calculator starts from a price you already have; to solve for the price with shipping and platform fees included, use the selling price calculator on this site.