Profit Margin Calculator
Margin and markup both describe profit but use different bases: margin divides profit by the selling price, markup divides it by the cost. A 50% markup is only a 33.3% margin.
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How to use the profit margin calculator
- 01
Cost price
What the item costs you, including purchase and direct costs.
- 02
Selling price
What the customer pays (before tax).
- 03
Read results
Profit, margin % and markup %, with formulas shown.
Good to know
- Use prices before GST — tax isn't your profit.
- Calculations run in your browser.
Frequently asked questions
What's the formula?
Profit = selling price − cost. Margin % = profit ÷ selling price × 100. Markup % = profit ÷ cost × 100.
Can margin be over 100%?
No. It approaches 100% as cost approaches zero. Markup has no upper limit.
What if I sell at a loss?
Profit, margin and markup show as negative values.