Profit Margin & Markup Calculator

Subtract the cost from the selling price, divide the result by the selling price, and multiply by 100. For example, if an item costs 45 and sells for 80, the profit is 35 and the margin is 35 / 80 × 100 = 43.75%. Enter both prices in the calculator to get this instantly.

Margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. For an item that costs 600 and sells for 1,000, the margin is 40% but the markup is about 66.67%. The calculator shows both so you do not mix them up.

There is no single good profit margin, because it depends on the industry. Grocery shops often have low gross margins, while software and services can have much higher ones. Compare your margin with similar businesses in your market. This calculator shows gross margin only, not net profit after all expenses.

No. It calculates gross margin for a single item or sale, based only on cost and selling price. Net profit margin also subtracts rent, salaries, taxes, marketing, and other expenses, which are not included here. To estimate net margin, you would need to include those extra costs in your cost figure.

The calculator shows a negative profit, margin, and markup, which means you are selling at a loss. For example, a cost of 50 and a selling price of 40 gives a profit of −10, a margin of −25%, and a markup of −20%. Raise the price or lower the cost to fix it.