Result
Profit Margin Calculator
Calculate profit, markup and profit margin from product cost and selling price.
How to check this result
Enter product cost and selling price using the same currency and tax basis.
Method and assumptions
Profit is selling price minus cost. Margin expresses profit as a share of selling price, while markup compares profit with cost.
Before making a decision
Real business results may also include labour, shipping, refunds, taxes and overhead.
Margin is not markup
Method and inputs
Enter cost and selling price in the same currency, with the same treatment of tax. Profit = selling price − cost. Margin divides that profit by selling price; markup divides it by cost. These denominators answer different pricing questions.
Worked example
An item costing 60 and selling for 100 earns 40 before other expenses. Margin is 40 ÷ 100 × 100 = 40%. Markup is 40 ÷ 60 × 100 ≈ 66.67%.
Limits and common mistakes
Include packaging, payment charges or delivery in cost if you want them reflected. This is a product-level comparison, not a complete net-profit statement. Selling below cost produces a loss and negative margin.
What if the cost is zero?
Margin can still be calculated for a positive selling price, but percentage markup is undefined because it requires division by zero. The tool reports that limitation instead of inventing a markup.
Content updated: 2026-10-03.
Reference for checking the method
Margin and markup use different denominators: revenue and cost respectively.
This reference explains the concept; its publisher has not verified or endorsed this calculator.