Margin vs markup, clearly

Profit Margin Calculator

Enter your cost and sale price to see profit, margin and markup side by side — no more mixing them up.

$0.00Profit
0%Profit margin (of price)
0%Markup (of cost)

How it works

1

Enter cost and price

Your product or service cost, and what you actually charge for it.

2

See your profit

The straightforward dollar profit on every sale.

3

Compare margin and markup

Both percentages, calculated correctly and shown together so you never confuse them.

FAQ

What's the difference between margin and markup?

Margin is profit as a percentage of the sale price, while markup is profit as a percentage of the cost. They use the same profit but different denominators, so they're never equal unless profit is zero.

How is profit margin calculated?

Profit margin equals profit (sale price minus cost) divided by the sale price, shown as a percentage.

Why is my margin lower than my markup?

Because margin divides by the larger sale price while markup divides by the smaller cost, margin will always be lower than markup for the same profit whenever there's a profit at all.

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