Profit Margin Calculator
Work out your profit and margin percentage from cost and selling price — or work backwards from a target margin.
How it works
Profit is selling price minus cost. Margin expresses that profit as a percentage of the selling price — the share of every dollar of revenue that’s profit. Markup expresses the same profit as a percentage of cost instead. Entering a target margin instead of a price solves the same formula in reverse: selling price = cost ÷ (1 − margin ÷ 100).
Margin % = Profit ÷ Selling Price × 100
Worked example
A product costing $60, sold for $100:
- Profit
- $100 − $60 = $40
- Margin
- $40 ÷ $100 = 40%
- Markup
- $40 ÷ $60 ≈ 66.7%
Frequently asked questions
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A $40 profit on a $100 sale (cost $60) is a 40% margin but a 66.7% markup — the same sale, two different percentages.