Profit Margin Calculator
Calculate profit margin and markup percentage.
About this tool
Profit margin and markup are often confused but answer different questions. Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Enter your revenue and cost to see both, along with the raw profit.
Key Features
- Profit margin %
- Markup %
- Raw profit amount
How to Use
- Enter your revenue (the price you sell at).
- Enter your cost.
- Click Calculate Margin.
Benefits
- Price products correctly for a target margin
- Avoid confusing margin with markup when setting prices
- Compare profitability across products
Frequently Asked Questions
Margin divides profit by the selling price; markup divides profit by the cost. A 50% markup on a $60 cost gives a $90 price, which is only a 33% margin — the two numbers are never equal except at 0%.
It varies enormously by industry — retail often runs on thin single-digit to low-double-digit margins, while software or services can run 60–80%+. There's no universal target.