Profit Margin Calculator
Enter your cost and selling price to instantly see profit, profit margin and markup percentage together. ToolOrbit makes it easy to understand the difference between margin and markup so you can price products with confidence — all calculated locally.
Examples
Cost $60, price $100
Profit $40.00, Margin 40%, Markup 66.67%
How it works
Profit is the selling price minus the cost. Margin expresses that profit as a share of the price; markup expresses it as a share of the cost. Same profit, two different percentages.
| Selling price | Profit | Margin | Markup |
|---|---|---|---|
| 75 | 15 | 20% | 25% |
| 100 | 40 | 40% | 66.67% |
| 120 | 60 | 50% | 100% |
Margin can never reach 100% while there is any cost, but markup has no upper limit. If the price is below the cost, profit, margin and markup all come out negative. The cost you enter should include everything you pay per unit, or the margin will look better than it is.
How to use Profit Margin Calculator
Why use this tool
Frequently asked questions
Margin is profit as a percentage of the selling price (profit ÷ price). Markup is profit as a percentage of the cost (profit ÷ cost). Markup is always the larger number.
Profit margin % = (price − cost) ÷ price × 100. It tells you what share of each sale is profit.
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