Profit Calculator
Calculate profit, margin, and markup from a cost and selling price, with both terms clearly explained.
Margin is profit as a share of the selling price; markup is profit as a share of the cost. They're often confused with each other but answer different questions.
Overview
Given a cost and a selling price, this tool immediately shows your profit per unit along with both margin and markup, which are frequently confused with each other.
- Instant profit, margin, and markup from two numbers
- Clear explanation of the difference between margin and markup
How to use it
- 1Enter your cost per unit
- 2Enter your selling price
- 3Read the profit, margin, and markup
Frequently asked questions
Why are margin and markup different numbers?
Margin divides profit by the selling price; markup divides profit by the cost. Because the selling price is always higher than the cost, margin is always a smaller percentage than markup for the same numbers.
Which one should I use when pricing?
That depends on how you think about pricing — many businesses target a margin percentage since it directly reflects what share of revenue is profit, but either is valid depending on your industry's convention.