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Financial Calculators

Profit Margin Calculator

Find the profit on a product or job and express it as a margin (share of the selling price) and as a markup (share of the cost). Mixing the two up is one of the most common pricing mistakes.

$
$
Profit margin36%
Gross profit
$360.00
Markup
56.25%
Step-by-step working
  1. Profit = $1,000.00 − $640.00 = $360.00
  2. Margin = profit ÷ revenue = 36%
  3. Markup = profit ÷ cost = 56.25%

How to use the Profit Margin Calculator

  1. Enter what the item costs you.
  2. Enter the price you sell it for.
  3. Press Calculate.

Formula

Margin = (Revenue − Cost) ÷ Revenue × 100

Markup = (Revenue − Cost) ÷ Cost × 100

Examples

  • Cost 640, price 1,000: profit 360, margin 36%, markup 56.25%.

Frequently asked questions

Margin or markup, which should I quote?

Margin can never reach 100%, and accountants usually report it. Markup is handy when setting prices from costs. Use the Markup Calculator for that.

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