Free tool · Finance
Margin Calculator
Enter a cost and a selling price to see the profit margin, the profit per unit, and the markup as a percent of cost.
Margin on a $60.00 cost sold at $100.00?
A $40.00 profit per unit — the same profit is a 66.67% markup on cost.
- Profit = $100.00 − $60.00 = $40.00 per unit.
- Margin = $40.00 ÷ $100.00 = 40.00% · markup = $40.00 ÷ $60.00 = 66.67%.
How to use this margin calculator
- Enter what one unit costs you.
- Enter the price you sell it for.
- Read the large figure: the profit margin, with profit per unit and markup alongside.
What margin is
A margin calculator shows how much of a selling price is profit. Enter a cost and a selling price to see the profit margin as a percentage of the selling price, the profit per unit, and the markup as a percentage of cost.
Margin and markup describe the same profit from different starting points: margin divides profit by the selling price, markup divides it by the cost, so the two percentages never match on a profitable sale. At a $60.00 cost and a $100.00 price, the $40.00 profit is a 40.00% margin and a 66.67% markup.
Reading the gauge
The graphic under the result reads your margin as an instrument dial. The orange sweep fills the semicircle from 0% toward 100% and stops at your margin: in the default example it reaches 40.00%, the number under the arc. The three readings beside the dial repeat the figures behind it — the $60.00 cost, the $40.00 profit, and the same profit expressed as a 66.67% markup on cost. Push the cost up and the sweep shrinks back toward zero; sell at cost and it empties entirely.
The formulas
Profit margin
Margin = (price − cost) ÷ price × 100
Subtract cost from price, divide by the selling price, and multiply by 100. For a $60.00 cost and $100.00 price, ($40.00 ÷ $100.00) × 100 = 40.00%.
Markup
Markup = (price − cost) ÷ cost × 100
Divide the same profit by the cost instead of the price. At the default figures the markup is 66.67% — always higher than the margin on a profitable sale, because the cost is the smaller number.
Profit per unit
Profit = price − cost
The dollar profit on each sale, and the starting point for both percentages: $100.00 − $60.00 = $40.00.
Examples
| Example | Cost | Selling price | Profit | Margin | Markup |
|---|---|---|---|---|---|
| Default | $60.00 | $100.00 | $40.00 | 40.00% | 66.67% |
| Lower price | $25.00 | $40.00 | $15.00 | 37.50% | 60.00% |
| Thin margin | $80.00 | $100.00 | $20.00 | 20.00% | 25.00% |
Three mistakes people make with margin
Using markup when you mean margin
A 66.67% markup sounds like a large return, but it is a 40.00% margin on the selling price. If prices are set with markup and then reported as margin, the two figures will not match. Decide which measure you are using before setting a price.
Assuming a 50% markup gives a 50% margin
A 50% markup on a $60.00 cost gives a $90.00 price, and the margin is only $30.00 ÷ $90.00 = 33.33%. The two measures meet only at zero profit. Check margin against the selling price, not the cost.
Ignoring costs beyond the purchase price
This calculator uses the cost you enter, so shipping, fees and packaging must be inside that cost for the margin to be honest. Leave them out and the margin shown is higher than the profit you actually keep.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides profit by the cost. For a $60.00 cost and $100.00 price, the margin is 40.00% and the markup is 66.67%.
How do I calculate profit margin?
Subtract the cost from the selling price, divide by the selling price, then multiply by 100. For a $100.00 price and $60.00 cost, ($100.00 − $60.00) ÷ $100.00 × 100 = 40.00%.
What margin does a $25 cost at a $40 price give?
The profit is $15.00, the margin is 37.50%, and the markup is 60.00%. Margin is $15.00 ÷ $40.00; markup is $15.00 ÷ $25.00.
What margin does an $80 cost at a $100 price give?
The profit is $20.00, the margin is 20.00%, and the markup is 25.00% — a lower margin can still hide a 25% markup on cost.
Can the selling price be lower than the cost?
Yes — the calculator still works, and the margin comes out negative, because the sale makes a loss. The figures describe the values you enter, loss included.
Does this calculator give financial advice?
No. It performs the arithmetic for the cost and price you supply. It does not recommend prices or products, and it cannot see costs you leave out of the cost field.
Privacy and important information
This calculator runs entirely in your browser: your numbers are never sent to a server, stored, or shared. It is a calculation aid for pricing, not financial advice.
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