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
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of selling price
Markup
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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.