Margin Calculator
Find your profit and profit margin. Enter what an item costs you and what you sell it for to see the profit and margin percentage.
About the Margin Calculator
This calculator finds your profit and your profit margin from a cost and a selling price. Profit is simply the selling price minus the cost. Margin expresses that profit as a percentage of the selling price, which is what most retailers and accountants mean by gross margin. It helps you price products, check whether a sale still earns money and compare the profitability of different items.
How to use it
- Enter the cost, what the item costs you to buy or make.
- Enter the selling price, what you charge the customer.
- See the profit and the margin percentage.
Watch the difference between margin and markup. Margin divides profit by the selling price, while markup divides profit by the cost, so a 50 percent markup is only a 33.3 percent margin. Mixing them up is a common pricing mistake. This is a gross figure that ignores overheads, shipping and taxes, so your net profit will be lower. The calculation runs in your browser and nothing is uploaded.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by the selling price, while markup is profit divided by the cost. A 25 markup on a 100 cost item sold at 125 is a 25 percent markup but only a 20 percent margin.
How is profit margin calculated?
Subtract the cost from the selling price to get the profit, then divide that profit by the selling price and multiply by 100. Selling at 80 with a cost of 60 gives a 20 profit and a 25 percent margin.
Is this gross or net margin?
It is gross margin, based only on cost and selling price. It does not include overheads, marketing, shipping or tax, so your net margin after all expenses will be lower.
Can margin be negative?
Yes. If the selling price is below the cost, the profit and margin are negative, meaning you are selling at a loss.