Profit Margin Calculator
Calculate profit, margin, and markup from cost and selling price.
$40.00
Profit
40.00%
Profit margin
66.67%
Markup
Margin vs Markup
- Margin: (profit / revenue) × 100 — based on selling price
- Markup: (profit / cost) × 100 — based on cost
Example: cost $60, sell $100 → profit $40. Margin = 40%, Markup = 66.67%.
Privacy
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Frequently Asked Questions
What is profit margin?
Profit margin = (revenue − cost) / revenue × 100. It shows what percentage of revenue is profit.
What's the difference between margin and markup?
Margin is based on revenue ((price − cost) / price). Markup is based on cost ((price − cost) / cost). Margin is always lower than markup.
What's a good profit margin?
Retail: 5-10%. Software: 70-90%. Services: 20-50%. Depends heavily on industry.
Is it free?
Yes, completely free.
Can I use it for e-commerce?
Yes. Enter product cost (including shipping) and selling price to get your margin.