๐Ÿ“Š Free Calculator โ€ข Updated Jan 1, 2025

Profit Margin Calculator

Calculate your gross profit margin and markup percentage. Understand the difference between margin and markup.

Price & Cost

$
$
%

Profit Margin

51.7%

Net Profit / Price

Markup

155.0%

Net Profit / Cost

Net Profit

$23.25

Analysis

Sale Price$45.00
Cost of Goods-$15.00
Fees-$6.75
Net Profit$23.25
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Margin vs. Markup

Many sellers confuse these two terms. Margin is based on revenue (selling price), while Markup is based on cost.

Formulas

Profit Margin

The percentage of the selling price that is profit.

Margin = (Net Profit / Revenue) ร— 100

Markup

The percentage increase over the cost price.

Markup = (Net Profit / Cost of Goods) ร— 100

Example Calculation

  • Cost: $50

  • Sell Price: $100

  • Profit: $50

  • Margin: ($50 / $100) = 50%

  • Markup: ($50 / $50) = 100%

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