Margin Calculator

Margin Calculator calculates profit margin from your revenue and cost, helping you see how much profit remains from each sale.

On this page:

Margin Calculator

This calculator finds profit margin from cost and selling price (or revenue and cost).

Formulas

Profit = Selling Price − Cost
Profit Margin (%) = (Profit ÷ Selling Price) × 100

Markup is different:
Markup (%) = (Profit ÷ Cost) × 100

Example

Cost = $40, Selling Price = $55
Profit = 55 − 40 = $15
Margin = (15 ÷ 55) × 100 ≈ 27.27%
Markup = (15 ÷ 40) × 100 = 37.5%

Many people confuse margin with markup. They are not the same.

Frequently Asked Questions FAQ

What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost.
How do I calculate profit margin?
Margin = ((Selling Price − Cost) ÷ Selling Price) × 100.
Can margin be higher than 100%?
Yes, if the product is sold for more than twice the cost.
What if cost is higher than selling price?
You have a loss (negative margin).
Which one should I use for pricing?
Both are useful. Margin is better for understanding profitability; markup is often used when setting prices from cost.

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