Business
Profit Margin Calculator
See gross profit, margin and markup from your cost and selling price.
Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost.
Profit margin vs markup
If an item costs $40 and sells for $65, gross profit is $25. Profit margin divides that profit by the selling price, while markup divides it by cost.
Use it for pricing decisions
Test several selling prices to see how pricing changes margin. This is useful when evaluating discounts, vendor cost increases or minimum acceptable pricing.