Profit Margin Calculator

Work out profit, margin and markup from a cost and a selling price. It runs in your browser.

Also searched as: margin calculator · markup calculator · gross margin calculator

Updated November 9, 2026

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How to use it

  1. 1

    Enter the cost

    What the item costs you.

  2. 2

    Enter the price

    What you sell it for.

  3. 3

    See the result

    The profit, the margin and the markup.

Questions about profit margin calculator

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of the cost.

Why is markup higher than margin?

Because the cost is smaller than the price, the same profit is a bigger share of it.

Is my information private?

Yes. It is worked out on your device.

Margin and markup are different

Margin is profit as a share of the selling price, and markup is profit as a share of the cost. The same sale gives two different percentages, and markup is always the larger one. The table shows a few examples worked out by the tool.

CostSelling priceProfitMarginMarkup
60.00100.0040.0040.00%66.67%
50.0075.0025.0033.33%50.00%
80.00100.0020.0020.00%25.00%
25.00100.0075.0075.00%300.00%
10.0015.005.0033.33%50.00%

Setting a price for the margin you want

To reach a 30% margin on an item that costs 70.00, divide the cost by one minus the margin: 70.00 divided by 0.70 is 100.00. A 30% markup works differently. Multiplying the cost by 1.3 gives 91.00, and the margin on that price is only 23.08%.

A common mistake is to quote a markup as if it were a margin. Selling a 100.00 item at 150.00 is a 50% markup, but the margin is 33.33%.

What the calculator leaves out

The tool uses only the cost and the price, so it shows gross margin. Overheads, shipping, payment fees, discounts and taxes all reduce what you actually keep. Include them in the cost if you want the figure to reflect real profit.

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