Profit Margin Calculator
Enter a selling price and cost to see profit, margin, and markup side by side.
Inputs
Result
Profit margin
40.00%
Profit $40.00 · markup 66.67%
Visual breakdown
Revenue
$100.00
Cost
$60.00
Profit
$40.00
Margin
40.00%
Formula
Profit = revenue − cost. Margin % = profit ÷ revenue × 100. Markup % = profit ÷ cost × 100. Margin and markup describe the same dollar profit against different denominators.
Example
Price $100, cost $60 → profit $40, margin 40%, markup 66.67%.
Related: Markup · Break-even · ROI
How to use
- Use net cost (COGS) — not retail — to keep margin honest.
- Compare margins across SKUs to spot under-priced products.
- Pair with markup to set list price from a target margin.
When it's useful
- Pricing a product or service.
- Reviewing gross margin on a sale.
- Comparing markup vs margin quickly.
Common examples
Price $100, cost $60
Profit $40 · margin 40% · markup ≈ 66.7%.
Price $250, cost $200
Profit $50 · margin 20%.
Cost-only
Set revenue to 0 to focus on cost.
Frequently asked
What's the difference between margin and markup?
Margin divides profit by revenue. Markup divides profit by cost. Same profit, different base — both shown here.
Is this gross or net margin?
Gross — it uses direct cost only. Net margin would also subtract operating expenses and taxes.
Does it handle losses?
Yes. If cost exceeds revenue, profit and margin go negative.
Can I use any currency?
Yes. The math is currency-agnostic — use whatever values you work in.