Cost 100, selling price 150
Profit 50. Margin = 50 ÷ 150 = 33.3%. Markup = 50 ÷ 100 = 50%.
Cost 100 · price 150
Profit 50 · margin 33.3% · markup 50%
Profit Margin Calculator
Get profit, margin and markup from cost and selling price.
Result
- Profit
- 50
- Margin
- 33.33%
- Markup
- 50%
Margin = Profit ÷ Selling price × 100
Markup = Profit ÷ Cost × 100
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About this tool
Margin and markup describe the same profit against different bases, and confusing them is expensive. Margin is profit as a share of the selling price; markup is profit as a share of the cost.
Buy for 100 and sell for 150: the profit is 50, the markup is 50%, and the margin is 33.3%. A supplier quoting "50% markup" and a finance report showing "33% margin" are describing the same transaction. This calculator reports both, with the formula for each.
How to use it
- Enter what the item costs you.
- Enter what you sell it for.
- Read the profit, the margin and the markup together.
- If the selling price is below cost the loss is called out explicitly, rather than being buried in a negative percentage.
Examples
Common problems
- The margin looks lower than the markup you were quoted.
- It always will be, when there is profit. The margin divides by the larger number. A 50% markup is a 33.3% margin.
- Markup is not shown.
- Markup divides by the cost, so it is undefined when the cost is zero. The margin is still calculated.
- The margin here does not match the accounting report.
- This is gross margin on one item. An accounting report may use net margin, which also subtracts operating expenses, or may be working on VAT-exclusive figures.