Profit Margin Calculator
Profit, margin and markup compared.
Profit
40
Profit margin
40%
Markup
66.6667%
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About Profit Margin Calculator
Profit is selling price minus cost. Margin divides profit by the selling price, while markup divides profit by cost. A price of 100 and cost of 60 produces a 40% margin but a 66.67% markup.
Important considerations
Both cost and selling price must be positive to avoid undefined ratios. A selling price below cost produces negative profit. Include the appropriate costs before interpreting the result as a business margin.
Want to understand the math?
Read our plain-language guide: How to Calculate Profit Margin (and Why It Isn't Markup)