Calculate profit margin and markup from your cost and selling price. See your gross profit, margin percentage and markup percentage side by side.
Enter what an item costs you and what you sell it for to get profit, margin % and markup %.
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Set a target profit margin and your cost to find the selling price you should charge.
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Profit margin is profit as a share of the selling price; markup is profit as a share of the cost. They look similar but are not interchangeable — a 50% markup is only a 33% margin.
They use different bases. Margin divides profit by the selling price; markup divides it by the cost. Margin is always lower than the equivalent markup.
Margin is the figure reported on income statements and most useful for comparing profitability. Markup is handy for setting prices quickly from a known cost.