Calculate profit margin, markup, and selling price.
Margin % = (selling price − cost) / selling price × 100%; markup % = (selling price − cost) / cost × 100%.
A $50 item sold for $80 has a 37.5% margin and a 60% 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.
Margin is better for understanding profit on revenue; markup is easier for setting prices from a known cost. Many businesses track both.
No. The cost is the direct cost of the item. Overhead and operating expenses reduce the true net profit further.
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