Business
Profit margin calculator
Enter a selling price and a cost to see the profit, the profit margin, and the markup — instantly, as you type.
- Profit
- $40.00
- Profit margin
- 40.0%
- Markup
- 66.7%
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The same profit gives a smaller margin than markup.
Margin vs markup — the number people mix up
Margin and markup describe the same profit from two different angles. Margin measures profit against the price you charge; markup measures it against what the item cost you. Because the price is always larger than the cost, the margin percentage is always smaller than the markup percentage — which is why quoting one when you mean the other can be an expensive mistake.
Where profit fits in the bigger picture
Profit is what’s left after costs — the difference between revenue and profit. To go deeper on how businesses price, cost, and earn, explore the Business subject.
Frequently asked questions
- How do you calculate profit margin?
- Profit margin is profit divided by revenue, times 100. If you sell for $100 and it cost $60, the $40 profit ÷ $100 revenue = 40% margin. This tool computes it as you type, along with markup.
- What is the difference between margin and markup?
- Both use the same profit, but over a different base. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A $40 profit on a $60 cost is a 40% margin but a 67% markup — so the two numbers are never the same.
- What is a good profit margin?
- "Good" varies hugely by industry — grocery retail runs on thin single-digit margins while software can exceed 80%. Compare against typical margins in your own field rather than a universal number. This is general education, not business or financial advice.
- Is it free and private?
- Yes — nothing is stored and there’s no sign-up. It all runs in your browser.