Profit Margin Calculator Guide

Margin and markup use different denominators and are often confused. Margin divides profit by selling price, while markup divides profit by cost.

How to use the Profit Margin Calculator

1. Enter the unit cost and selling price in the same currency.
2. Run the calculator to see profit, margin, and markup together.
3. Use the metric required by the business report instead of substituting the other percentage.

A practical example

An item that costs $60 and sells for $100 produces $40 profit, a 40 percent margin, and a 66.67 percent markup.

The Profit Margin Calculator runs locally in the browser, so the input is available for the calculation without being uploaded by this tool.

Checks before you use the output

• Include variable fees in cost when they apply to every sale.
• A positive markup does not guarantee the business covers fixed overhead.
• Taxes collected for authorities are usually not revenue.

Use the result as part of a review

Compare profit, margin percentage, and markup percentage. The output is designed to make a small task faster, but it should still be checked against the requirements of the destination system, document, or decision.

Privacy and safe sample data

Processing happens in the current browser tab. Even so, remove passwords, authorization values, customer records, and other confidential data before copying results into chat, tickets, or public examples.