Calculate profit margin and markup from revenue and cost — and see how the two differ.
Calculate profit margin and markup from revenue and cost — and see how the two differ.
Enter values above and click Calculate — results will appear here with the formula explained.
Margin and markup describe the same profit from two different bases. Margin measures profit as a share of the selling price; markup measures it as a share of your cost. A product bought for $90 and sold for $150 carries a 40% margin but a 66.7% markup.
Confusing the two is a classic pricing mistake. If a business wants a '50% margin' but computes price as cost plus 50%, it actually sets a 33% margin — leaving real money on the table across every sale.
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Profit Margin Calculator: Calculate profit margin and markup from revenue and cost — and see how the two differ. Formula: margin % = (revenue − cost) ÷ revenue × 100. Example: Selling at $150 something that costs $90 yields $60 profit.
Margin and markup describe the same profit from two different bases. Margin measures profit as a share of the selling price; markup measures it as a share of your cost. A product bought for $90 and sold for $150 carries a 40% margin but a 66.7% markup.
Confusing the two is a classic pricing mistake. If a business wants a '50% margin' but computes price as cost plus 50%, it actually sets a 33% margin — leaving real money on the table across every sale.
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Selling at $150 something that costs $90 yields $60 profit. That's 60/150 = 40% margin, and 60/90 ≈ 66.7% markup — same dollars, different stories.
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