About this profit margin calculator
Margin and markup are often confused. Margin is profit ÷ selling price; markup is profit ÷ cost.
How to use
- Enter cost and selling price.
- Compare margin % vs markup %.
Formula
Margin % = (Price − Cost) ÷ Price × 100
Markup % = (Price − Cost) ÷ Cost × 100
Worked examples
Example: Cost $40, price $65 → profit $25, margin 38.46%, markup 62.5%.
Tips
- Price from desired margin carefully — margin and markup are not interchangeable.
Frequently asked questions
What is a good profit margin?
It depends on industry. Software can run high margins; grocery retail is often thin. Compare within your sector.