When to use it
Use it when you need a clear result without building a manual formula or spreadsheet.
Instant calculator
Profit Margin Calculator
Calculate profit margin from cost and selling price, and understand the difference between margin and markup.
FreeInstant calculator
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Input data
Enter the required values, then run the tool.OUTPUT
Result
Ready◇Your result will appear here
Complete the form and run the tool to see the result.
Usage guide
Use the tool with confidence
Enter the required data, review the result, then copy or export it as an image or PDF depending on the tool.How it works
Enter values, run the tool, then review the result and supporting details.
Note
Review the figures and context before making financial or business decisions.
What profit margin means
Profit margin expresses profit as a percentage of selling price or revenue. It helps show how much of each revenue unit remains after subtracting the cost you entered.
Inputs and field meanings
Review these values before running the tool. The labels below come from the actual form so the guidance matches what you will use on this page.
- Selling price: required, minimum 1e-8.
- Cost: required, minimum 0.
Profit margin formula
Profit = selling price - cost.
Profit margin % = profit ÷ selling price × 100. Do not confuse margin with markup, which divides profit by cost instead of selling price.
Business example
If cost is 350 and selling price is 500, profit is 150 and margin = 150 ÷ 500 × 100 = 30%.
How to review the result
- Use a consistent definition of cost; decide whether freight, commissions, or other expenses are included.
- Selling price cannot be zero in this margin formula.
- If cost exceeds selling price, a negative margin represents an arithmetic loss.
Profit margin questions
What is the difference between margin and markup?
Margin divides profit by selling price; markup divides profit by cost, so they produce different percentages for the same transaction.
Does a 30% margin mean I added 30% to cost?
Not necessarily. Margin is measured against selling price, not cost.
Should cost include every expense?
It depends on your purpose. Define which costs belong in the analysis and use that definition consistently.