About the profit margin calculator
Margin and markup both describe profit, but against different bases. Margin is profit as a share of the selling price (revenue). Markup is profit as a share of what the item cost you. A 25% markup is the same as a 20% margin.
Fill in any two of the values using the tabs. The calculator returns cost, revenue, profit, margin and markup so you can price products and compare deals.
Formula
- Profit = Revenue − Cost
- Margin = Profit ÷ Revenue × 100
- Markup = Profit ÷ Cost × 100
- Revenue = Cost ÷ (1 − Margin ÷ 100) = Cost × (1 + Markup ÷ 100)
Example
An item that costs $40 and sells for $50 earns $10 of profit: margin 20% ($10 ÷ $50) and markup 25% ($10 ÷ $40).