Profit Margin Calculator

Profit Margin Calculator

From cost and selling price, see profit, margin on revenue, and markup on cost. Margin and markup are not the same number. Math stays in the browser.

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1. Enter values

2. Result

Profit margin

38.46%

Profit

25.00

Markup

62.5%

Cost

40

3. Summary

Cost
40
Revenue / selling price
65
Profit
25.00

How is it calculated?

Profit is revenue minus cost. Margin is profit / revenue. Markup is profit / cost. They are not the same percentage even on the same pair of numbers.

Common use cases

Pricing

See both margin and markup before you set a list price.

Retail

Turn cost and selling price into a margin percent.

Wholesale

Check whether a quote still clears your target markup.

Quotes

Paste cost and bid to read profit in one place.

Margin vs markup

A 50% markup is not a 50% margin — compare both.

Losses

If revenue is below cost, percentages still compute as a loss.

Your data stays private

Cost and revenue are calculated locally in your browser. Nothing is uploaded or stored on a server.

Learn more about privacy →

About profit, margin, and markup

People say “margin” when they mean markup. Margin is profit as a share of the selling price: (revenue − cost) / revenue. Markup is profit as a share of cost: (revenue − cost) / cost. A product that costs 40 and sells for 65 has profit 25, margin 38.46%, and markup 62.50%. Pricing from markup (“add 50% to cost”) is not the same as targeting a 50% margin (that would require doubling the cost).

Revenue must be non-zero to define margin; cost must be non-zero to define markup. Negative profit means a loss — the percentages still compute. This tool does not allocate overhead, VAT, or volume discounts. Currency is a bare number.

Use Discount Calculator when you know list price and a percent off, not cost. Use Percentage Calculator for generic percent-of problems. Figures stay in the browser.

How to calculate margin and markup

Enter cost and selling price

Cost is what you paid. Revenue is what the customer pays.

Read margin first

The large number is margin. Profit and markup are listed under the result.

Copy the margin

Examples include 40/65 and a grocery-style 12/20. Calculate jumps to the figure.

Pricing stays here

We do not upload cost data. This is not accounting advice.

More math tools

Profit Margin Calculator FAQ

Margin is profit as a share of selling price: (revenue − cost) / revenue. Markup is profit as a share of cost: (revenue − cost) / cost. Cost 40 and revenue 65 is profit 25, margin about 38.46%, markup 62.50%. Adding 50% to cost (markup) is not the same as a 50% margin, which would require doubling the cost. Revenue cannot be 0 for margin; cost cannot be 0 for markup.

Negative profit still computes. Percentages can be negative. We do not allocate overhead, VAT, or volume discounts. Currency is a bare number. Use Discount Calculator when you know list price and a percent off rather than cost.

No. Cost and revenue are calculated locally in your browser. Nothing is uploaded or stored on a server. This is not accounting advice.