Profit Margin Calculator
Profit, margin and markupRuns locally · nothing uploaded
Gross margin
40%
Profit
40
Markup
66.67%
Also works as:profit calculatormarkup calculatorgross margin
How it works
When to use it
- Check a product's margin before setting a price.
- Keep margin and markup straight.
Formula
Profit = price − costMargin = profit ÷ price × 100%Markup = profit ÷ cost × 100%Worked example
Given: Cost $60, price $100
- Profit = $40.
- Margin = 40 ÷ 100 = 40%.
- Markup = 40 ÷ 60 ≈ 66.67%.
Result: 40% margin, 66.67% markup.
Reading the result
- For a 40% margin, price = cost ÷ (1 − 0.40). Marking up 40% (60 × 1.4 = $84) only yields a 28.6% margin.
- Margin can't exceed 100%; markup can.
Limitations
- Gross margin only — shipping, fees, marketing and overhead aren't deducted.
How to use
- 1Enter the cost.
- 2Enter the selling price.
- 3Read the profit, margin and markup.
FAQ
How do I calculate profit margin?
Margin = (price − cost) ÷ price × 100%.
What is the difference between margin and markup?
Margin is based on the selling price, markup on the cost. With cost 60 and price 100, margin is 40% and markup is 66.67%.
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