Calculate profit margin and markup from your cost and selling price — two related but distinct numbers that businesses often confuse.
How it works
- Input the cost of producing or acquiring the item.
- Input your selling (retail) price.
- The calculator processes the difference to reveal both your margin and your markup.
Frequently asked questions
Margin vs markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33% margin.
What is a good profit margin?
It varies widely by industry — grocery is thin (single digits), software can exceed 80%.
Which should I price with?
Markup is easy to apply to cost; margin is what shows on financial statements. Know both.