Profit Margin Calculator

Margin, markup & profit from cost and price

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Pricing a product? Enter your cost and selling price to see your profit, margin and markup — the numbers you need to price with confidence.

Margin vs. markup (they're not the same)

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% markup is only a 33% margin — confusing the two is a classic pricing mistake that quietly kills profit.

Frequently asked questions

What's the difference between margin and markup?

Margin = profit ÷ price; markup = profit ÷ cost. The same dollar profit gives a smaller margin % than markup %.

What is a good profit margin?

It depends on the industry — retail often runs 5–20%, software far higher. Compare within your sector.

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