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Profit Margin Calculator

Calculate profit, markup and profit margin from nonnegative cost and positive selling price.

Live editable inputs

Change the values and see the calculation update immediately.

Formula and working

The relationship behind the answer stays visible on the page.

Assumptions visible

Rates, dimensions and limitations are kept explicit instead of hidden.

Connected next steps

Move into the next genuinely different calculation without keyword-copy pages.

Inputs

Results

40% margin
Profit per unit: 40
Cost: 60
Selling price: 100
Markup on cost: 66.666667%
Selling price exceeds entered unit cost.
Show the working
  1. 1. Profit = 100 − 60 = 40.
  2. 2. Margin = 40 ÷ 100 × 100 = 40%.
  3. 3. Markup = 40 ÷ 60 × 100 = 66.666667%.

Margin and markup use different denominators: margin uses selling price/revenue while markup uses cost.

This simple per-unit model does not allocate fixed overhead, taxes, discounts, returns or channel fees unless those amounts are already included in the cost input.

More actions

Shared links reopen these inputs. Recent and saved calculations stay in this browser unless you clear site data.

How to use this calculator

Calculate profit per unit, margin on selling price and markup on cost from the same two inputs. Keeping margin and markup side by side prevents a common pricing error: they use different denominators and therefore are not interchangeable percentages.

Step-by-step

  1. Step 1

    Enter unit cost and selling price.

  2. Step 2

    Read profit per unit and margin, which divides profit by selling price.

  3. Step 3

    Compare markup, which divides profit by cost, and check the loss diagnostic when selling price is below cost.

How the result is calculated

Profit = selling price − cost; margin % = profit ÷ selling price × 100; markup % = profit ÷ cost × 100.

Where this calculator is useful

Simple product pricing checks

Use the result as a check within this type of task, with the assumptions shown above.

Margin-versus-markup comparisons

Use the result as a check within this type of task, with the assumptions shown above.

Screening per-unit profit or loss before fixed overhead

Use the result as a check within this type of task, with the assumptions shown above.

Common questions

What is the difference between margin and markup?

Margin divides profit by selling price/revenue. Markup divides the same profit by cost, so the percentages differ unless profit is zero.

Can profit margin be negative?

Yes. If selling price is below the entered cost, profit and margin are negative and the calculator identifies the scenario as a loss.

Does this include fixed overhead or taxes?

Only if you have already included them in the cost input. This owner is a simple per-unit gross calculation, not a complete income statement.

Need a different calculation?

Use the calculator library to switch tasks when the question, unit or assumption changes.

Browse all calculators

Common margin questions

profit marginprofit per salemarkupcost and selling price

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