How to use Profit Margin
Compare selling price, profit margin, and markup.
- Choose the operation and enter every labeled input, keeping units and the time period consistent.
- Calculate, compare the worked example below and inspect any warnings.
- Change one assumption to compare another scenario; keep the model’s limits in view.
Formula & calculation method
Profit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100.
Input reference · 2 fields
These labels describe the calculation’s base units. Supported measurements can switch through the header’s region settings; follow the current workspace labels. Prefilled values are examples.
- Cost
- Enter a plain number with a decimal point if needed. The workspace shows an illustrative value, not a recommendation.
- Selling price
- Enter a plain number with a decimal point if needed. The workspace shows an illustrative value, not a recommendation.
A quick example
A cost of 80 and price of 100 gives 20% margin and 25% markup.
Assumptions, edge cases & limits
- Margin is undefined at a zero selling price and markup is undefined at zero cost.
- The cost you enter determines whether this resembles gross or another simplified profit measure.
- Include all relevant costs yourself. This does not calculate tax or accounting profit.
Questions about Profit Margin
Why are margin and markup different percentages?
They divide the same profit by different bases. With a cost of 80 and selling price of 100, profit is 20, margin is 20% and markup is 25%.
Is this my final business profit after tax?
Only if your entered cost includes every relevant cost and tax under your intended model. This simple calculation does not automatically include overhead, returns, payment fees or income tax.
Are my files or inputs uploaded?
Calculation and file processing run in your browser without a processing upload. Downloads go to your device. Choosing a next-step transfer creates a temporary local copy for that workflow. Region preferences are stored separately from tool inputs. See our privacy details.
Can I use this tool for free?
Yes. No signup, subscription or payment is required to use the tool or download its output. File tools have device and size limits; a smaller batch may work better on a phone.
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