Profit Margin Calculator
Enter what an item costs you and what you sell it for. You get the profit in money, the margin and the markup, which people often confuse.
How it works
Profit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100. An item bought for 80 and sold for 100 has a profit of 20, a margin of 20% and a markup of 25%.
Questions
What is the difference between margin and markup?
Margin compares profit with the selling price. Markup compares profit with the cost. The same sale always has a higher markup than margin.
Should cost include shipping and other expenses?
Include every cost directly tied to the item, such as purchase price and inward freight, to see a realistic margin.
Can the margin be negative?
Yes. A negative figure means you sell below cost.
Results are estimates for planning. They are not tax, legal or financial advice.
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