What is the difference between margin and markup?
Margin uses selling price as the denominator; markup uses cost.
Profit Margin Calculator
Calculate profit, margin percentage, and markup from cost and revenue.
Calculations happen locally. We do not send your values to our server.
Example
An item costing $60 and selling for $100 has $40 profit, a 40% margin, and a 66.67% markup.
Calculation method
Profit is revenue minus cost. Margin divides profit by revenue; markup divides profit by cost.
Important notes
This simple calculation excludes overhead, taxes, payment fees, returns, and other business costs.
Frequently asked questions
Can profit be negative?
Yes. When cost exceeds revenue, profit and percentages can be negative.
Why is markup unavailable when cost is zero?
A percentage cannot divide by zero.