Profit Margin Calculator
Calculate margin, markup, and profit from cost and revenue.
Margin vs. Markup
These two terms are often confused but mean very different things:
- Profit Margin: Profit as a percentage of the selling price. "How much of the sale is mine?"
- Markup: Profit as a percentage of the cost price. "How much did I add to the cost?"
Example
You buy a product for $100 and sell it for $150.
Profit = $50
Margin = (50 / 150) × 100 = 33.3%
Markup = (50 / 100) × 100 = 50.0%
Key Takeaway
Your markup percentage will always be higher than your margin percentage. Margin can never exceed 100%, but markup can be infinite.