About this calculator
Margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. A 40% margin is the same as a 66.67% markup.
Worked example
Buying at 60 and selling at 100 is a profit of 40: a 40% margin and a 66.67% markup.
How to use the profit margin calculator
- Enter the cost.
- Enter the selling price.
- Read the result — it updates as you type.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides it by the cost. Markup is always the larger number for a profitable item.
How do I price for a 40% margin?
Divide the cost by (1 − 0.40). A cost of 60 needs a price of 100.