Enter cost and price
Your product or service cost, and what you actually charge for it.
Enter your cost and sale price to see profit, margin and markup side by side — no more mixing them up.
Your product or service cost, and what you actually charge for it.
The straightforward dollar profit on every sale.
Both percentages, calculated correctly and shown together so you never confuse them.
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.
Profit margin equals profit (sale price minus cost) divided by the sale price, shown as a percentage.
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.