💹 Profit Margin Calculator

About this Profit Margin Calculator

Margin and markup are the two percentages every seller should know, and they are not the same number. Margin is profit as a share of the selling price, while markup is profit as a share of the cost. This calculator gives you the profit, the margin and the markup from just a cost and a selling price.

How to use it

1. Enter what the item costs you.
2. Enter the price you sell it for.
3. Click Calculate to see profit, margin and markup.

Example

An item that costs Rs 60 and sells for Rs 100 makes a profit of Rs 40. The margin is 40% and the markup is 66.67%.

Frequently asked questions

Why are margin and markup different?

They divide the same profit by different bases. Margin divides by the selling price (40 / 100 = 40%), markup divides by the cost (40 / 60 = 66.67%).

Which one should I use for pricing?

Use markup to set a price from your cost, and margin to judge how healthy a product or business is. Finance reports almost always use margin.

Can the margin exceed 100%?

No. Margin is capped at 100% because profit cannot exceed the selling price. Markup, however, can be well over 100%.

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