Profit Margin Calculator

Calculate profit margin, markup and profit from cost and selling price.

Profit margin

38.46%

Profit: $25.00
Markup: 62.5%

Profit margin38.46%

Results are estimates for planning and are not financial advice.

Was this calculator helpful?

How it works

Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33% margin — mixing them up is a common pricing mistake.

Formula

Margin = (Price − Cost) ÷ Price × 100
Markup = (Price − Cost) ÷ Cost × 100

Example

Cost $40, price $65: profit $25, margin 38.46%, markup 62.5%.

Assumptions & limitations

Results are rounded for display.

Frequently asked questions

What's a good profit margin?

It depends on the industry — grocery stores run on a few percent, while software can exceed 70%.