Profit Margin and Markup Calculator
Compare profit as a share of price and as a share of cost.
Formula and assumptions
Profit · Profit = Selling price − Total cost. Margin = ratio((Selling price − Total cost) × 100,Selling price). Markup = ratio((Selling price − Total cost) × 100,Total cost).
Margin uses selling price as its denominator. Markup uses cost. Undefined percentages are omitted.
This tool processes inputs in your browser. Calculator values are not stored or sent by this plugin.
Further reading: Digital Marketing Services: Elevating Your Brand and Driving Sales in the Online Era
Related tools: Discount Calculator
Page editor: Usman Arshad · Last edited: November 3, 2026
How to use this tool
Choose the relevant mode, enter Selling price and complete the labelled fields. Use Calculate to review your result.
Worked example
Selling price = 150, Total cost = 100.
Profit = 50.00 currency units · Margin = 33.33% · Markup = 50.00%.
These example values are illustrative.
Interpreting the result
To review a price change, enter the proposed selling price with unchanged unit cost. Compare the new margin with the contribution needed to cover fixed expenses.
Assumptions and limitations
Margin uses selling price as its denominator. Markup uses cost. Undefined percentages are omitted.
Why is markup larger than margin on a profitable sale?
The same profit is divided by the smaller cost base for markup.