Profit Margin
Margin, markup and profit from cost and price.
Profit = price โ cost = 100 โ 60 = 40 Margin = profit รท price = 40% Markup = profit รท cost = 66.67%
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% margin = 100% markup.
About the Profit Margin
Enter a unit cost and selling price to see profit per unit, profit margin and markup side by side, with the formulas written out using your actual numbers. The distinction matters for pricing: margin divides profit by price while markup divides it by cost, so the same deal produces two very different percentages.
How to use the Profit Margin
- Enter the cost per unit and the selling price.
- Read profit per unit, profit margin and markup in the stat tiles.
- Open the Formulas box to see each calculation with your values substituted.
- Adjust either input to test pricing scenarios instantly.
Profit Margin FAQ
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% margin corresponds to a 100% markup, as the tool's footnote notes.
How do I price for a target margin?
Iterate: adjust the selling price until the margin tile hits your target โ since markup divides by the smaller cost base, a 40% target margin needs a markup above 66%.
What if I sell below cost?
Profit turns negative and the per-unit tile flags it in red, which makes under-water pricing obvious at a glance.