What is the difference between margin and markup?

Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Selling at $100 something that cost $40 gives a 60% margin but a 150% markup.

How do I convert markup to margin?

Margin = Markup / (1 + Markup). A 100% markup equals a 50% margin. Confusing the two is a classic pricing mistake that silently shrinks expected profits.

What is a good profit margin?

It varies enormously by industry - grocery stores run 1-3% net margins while software companies often exceed 20%. Compare against your own industry benchmarks, not across industries.

Profit Margin Calculator

Calculate gross profit, profit margin, and markup from cost and selling price. Understand the difference between margin and markup.

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About Profit Margin Calculator

The profit margin calculator computes gross margin, net margin, and markup from revenue and cost — the pricing health indicators every business needs.

Margins determine pricing strategy, viability, and how much you keep from each sale. This tool returns gross profit, margin percentage, and markup in one view, so pricing decisions rest on numbers.

When to Use Profit Margin Calculator

Use it to price a product with a target margin, to check supplier quotes, or to report margins on a product line.

Pro Tip

Markup and margin are not the same — a 50% markup is a 33% margin, a classic source of pricing error.

Key Features

Processes Cost Price, Selling Price directly in your browser
Produces profit margin (%), markup (%) instantly
Completely free with no usage limits
No registration or account required

How to Use

Provide the required inputs (Cost Price, Selling Price).
The tool processes everything locally in your browser and instantly produces the following results: Profit Margin (%), Markup (%).
Review the result, then copy it to your clipboard or download the output file directly from this page.

Privacy note: Profit Margin Calculator runs 100% in your browser. Your data is never uploaded to any server, so nothing is stored or shared.

Benefits

Your data never leaves your device when using Profit Margin Calculator - everything runs locally
Get accurate results in seconds
Works on desktop, tablet, and mobile
No software download or installation needed