Profit Margin Calculator

Find net profit, margin and markup in seconds. Free. No signup required.

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INSTANT · FREE
Net profit before tax$20.00
Profit margin40.0%
Markup66.7%

Margin = profit ÷ selling price. Markup = profit ÷ total cost. A percentage is undefined when its denominator is zero. Currency is illustrative; all amounts must use the same currency.

How to use this calculator

Compare what an item costs you with what you sell it for. The calculator subtracts the costs you enter and shows both margin and markup, so you can tell how much of each sale you keep before tax.

  1. Enter the cost price of one item, or the total cost of a batch.
  2. Enter the selling price on the same basis: one item or the same batch.
  3. Add other expenses for that sale, such as packaging, shipping you pay for, or a platform fee expressed as an amount.
  4. Read the profit, margin and markup. All amounts should use the same currency.

Calculation formulas

Selling an item for $50

Cost price: $25 · Selling price: $50 · Additional costs: $5

Profit before tax
$20.00
Profit margin
40.0%
Markup
66.7%

Your total entered cost is $30. After selling for $50, you have $20 left. That is 40% of the selling price and about 66.7% of the total cost.

Useful to know

The result only includes the costs you enter. Income tax, recurring overhead and other expenses are not added automatically. A negative result represents a loss.

Frequently asked questions

What is the difference between margin and markup?

They use different denominators. Margin compares profit with the selling price. Markup compares profit with the total entered cost. In the example above, the same $20 profit gives a 40% margin and a 66.7% markup.

Can I use a currency other than dollars?

Yes. The dollar symbol is illustrative. Enter all amounts in the same currency and the percentages work the same way.

How do I include a percentage-based selling fee?

Convert it to an amount first. A 10% fee on a $50 sale is $5. Include that $5 in additional costs, together with any other expenses you want to subtract.

Why does a percentage show a dash?

Margin is undefined when the selling price is zero. Markup is undefined when the total entered cost is zero. The calculator shows a dash instead of an invalid percentage.

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