Profit Margin Calculator
Calculate profit, profit margin percentage, and markup from cost and selling price.
Profit Margin Results
What Is Profit Margin?
Profit margin shows how much of a company's selling revenue remains as profit after accounting for the cost of the product or service.
This calculator uses the cost price and selling price to calculate the profit or loss, profit margin percentage, and markup percentage.
Profit Margin Formula
Example
If an item costs $60 and is sold for $100:
Profit = $100 − $60 = $40
Profit Margin = ($40 ÷ $100) × 100 = 40%
Markup = ($40 ÷ $60) × 100 = 66.67%
Profit Margin vs. Markup
Profit margin and markup measure profitability from different perspectives.
Profit margin uses the selling price as the denominator, while markup uses the cost price.
Frequently Asked Questions
How do I calculate profit margin?
Subtract the cost price from the selling price to find the profit, then divide the profit by the selling price and multiply by 100.
What is the difference between margin and markup?
Margin is based on the selling price, while markup is based on the cost price.
Can profit margin be negative?
Yes. If the selling price is lower than the cost price, the result represents a loss and the profit margin is negative.