๐Ÿ’ฐ FinancebeginnerOffline

Profit Margin

Profit margin %, markup, and gross/net profit calculations.

Inputs
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Result
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Enter values and press Calculate โ€” the result appears here.

How it works
The formula behind this calculator.

margin = (revenue โˆ’ cost) / revenue ร— 100; markup = (revenue โˆ’ cost) / cost ร— 100

revenue
Selling price
cost
What you paid

Margin is profit as a share of the sale price. Markup is profit as a share of the cost. They sound similar but differ significantly.

Example: Cost $60, sold at $100: margin = 40%, markup = 67%

Ref: Accounting basics

Tips
  • ๐Ÿ’ก Margin and markup are different: margin = profit / revenue, markup = profit / cost.
  • ๐Ÿ’ก A 50% margin means 50ยข of every dollar is profit, not 50% off the price.

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