Solvria — Generated on 8/30/2026
Profit Margin Calculator
Calculate profit margin and markup from cost and selling price.
Enter your values to calculate your result.
Formula
Margin = (Selling Price − Cost) ÷ Selling Price × 100; Markup = (Selling Price − Cost) ÷ Cost × 100
Margin expresses profit as a percentage of the selling price. Markup expresses the same profit as a percentage of the cost — the two are always different unless profit is zero.
Example
An item costing $60 and selling for $100 has $40 profit: a 40% margin (40 ÷ 100) but a 66.67% markup (40 ÷ 60).
Frequently Asked Questions
Why are margin and markup different numbers?
Margin divides profit by the selling price; markup divides the same profit by the cost. Since selling price is always higher than cost (for a profitable sale), markup is always the larger percentage.