Profit Margin Calculator
Enter your cost and selling price to instantly see your profit, profit margin, and markup — all calculated live in your browser.
Margin vs. markup, made clear
Profit margin and markup describe the same dollar of profit from two different angles, and mixing them up is one of the most common pricing mistakes. Margin measures profit against the price a customer pays, so it can never exceed 100%. Markup measures the same profit against your cost, so it climbs much higher — a 50% margin is a 100% markup.
Enter your cost and selling price above and this calculator shows all three numbers at once: the raw profit, the margin, and the markup. Use margin when you're reporting profitability or comparing products, and markup when you're setting a price up from a known cost. Every figure updates instantly and never leaves your browser.
How it's calculated
Profit = revenue − cost. Margin = (profit ÷ revenue) × 100. Markup = (profit ÷ cost) × 100. That's the whole model — no hidden assumptions, so you can sanity-check any price in seconds.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price (profit ÷ revenue). Markup is profit as a percentage of the cost (profit ÷ cost). The same dollar profit always shows a higher markup than margin.
How do I calculate profit margin?
Subtract the cost from the revenue to get profit, then divide profit by revenue and multiply by 100. A $40 item that cost $25 has $15 profit and a 37.5% margin.
What is a good profit margin?
It varies by industry — retail often runs 5–20%, while software and services can exceed 60%. Compare against your own costs and competitors rather than a universal number.
Is this calculator free and private?
Yes. It runs entirely in your browser — no sign-up, and none of your figures are uploaded or stored.
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