Profit Margin Calculator

Enter your cost and selling price to instantly see your profit, margin, and markup — no spreadsheet needed.

Enter Your Numbers

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Your Results

Profit
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per unit
Profit Margin
—
of selling price
Markup
—
above cost

Understanding Your Numbers

What is Profit Margin?

Profit margin shows what percentage of your selling price you actually keep as profit. A 40% margin means for every $100 you sell, $40 is yours after covering costs.

Margin = (Profit ÷ Selling Price) × 100

What is Markup?

Markup shows how much you've added on top of your cost price. A 60% markup means you added $60 to every $100 it costs you — but this does not mean a 60% margin.

Markup = (Profit ÷ Cost Price) × 100

Why these numbers matter for your business

  • Set prices confidently. Knowing your margin means you never accidentally price below what you need to survive and grow.
  • Spot money leaks fast. A margin that keeps shrinking signals rising costs before they become a crisis.
  • Compare products fairly. One product may have higher revenue but lower margin — markup and margin reveal which items are actually worth selling.
  • Talk to investors and banks. Lenders and investors ask for margin data. Knowing your numbers builds instant credibility.
  • Avoid the markup trap. Many owners confuse markup with margin. A 100% markup sounds huge but only delivers a 50% margin — this calculator keeps you honest.