Profit Margin Calculator

Calculate profit amount, profit margin, and markup percentage from cost and selling price.

Inputs

Your total cost to buy, make, or deliver the item.

The price you charge the customer before any discounts.

How it works

  1. 1. Enter cost

    Include the direct cost you need the sale to cover.

  2. 2. Enter price

    Use the selling price before discounts or taxes.

  3. 3. Review margin

    See profit, margin, and markup from the same inputs.

Frequently asked questions

How do you calculate profit margin?

Subtract cost from selling price to get profit. Divide that profit by the selling price, then multiply by 100.

What is the difference between margin and markup?

Margin is measured against selling price. Markup is measured against cost, so the two percentages are not interchangeable.

Can profit margin be negative?

Yes. If cost is higher than selling price, the result is a negative margin and the sale loses money before overhead.