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Profit Margin Calculator

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

Use values from the same period and currency. Fees and taxes apply only where explicitly included in inputs.

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Result

Enter your values and run the tool to see your result.

What this tool does

Computes profit, margin, and markup from price and cost. Margin divides profit by price; markup divides profit by cost. The denominators differ, so the two figures differ for the same deal.

How to use it

  1. Enter the selling price. Decide whether it includes tax, and match that choice to the cost.
  2. Enter the cost. Decide up front whether it is purchase price only or includes fees and shipping.
  3. Run it to get profit, margin, and markup together.

Worked example

Price 150 and cost 100 give a profit of 50. Margin is 50/150, about 33.33%; markup is 50/100, or 50%.

Calculation method

Profitprice-cost
Margin(price-cost)/price*100
Markup(price-cost)/cost*100

Frequently asked questions

Are a 33% margin and a 33% markup the same?
No. Adding 33% markup to a cost of 100 gives a price of 133 and a margin of about 24.8%. Agree on the basis before trading numbers with a counterparty.
Should fees go into cost?
It depends on the question. To see what you actually keep, include payment and platform fees and shipping. To judge the product alone, use purchase price only.

What this tool does not cover

Margin is undefined when price is 0, and markup is undefined when cost is 0. Do not mix values from different periods.

References