Margin Calculator

Calculate profit margin, markup, and selling price.

Formula & Methodology

Margin % = (selling price − cost) / selling price × 100%; markup % = (selling price − cost) / cost × 100%.

Worked Example

A $50 item sold for $80 has a 37.5% margin and a 60% markup.

Frequently Asked Questions

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. They produce different numbers for the same transaction.

Which should I use for pricing?

Margin is better for understanding profit on revenue; markup is easier for setting prices from a known cost. Many businesses track both.

Does this include overhead?

No. The cost is the direct cost of the item. Overhead and operating expenses reduce the true net profit further.

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