Business Calculators

Profit Margin & Markup Calculator

Compare what a sale earns with what the product costs. Margin shows the share of selling price left after the unit cost. Markup shows how much was added to the unit cost. They describe the same sale from different starting points.

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How to use this tool

  1. Enter your unit cost and selling price.
  2. Choose quantity and currency.
  3. Review the percentages and copy the results.

Use the full cost you intend to recover per item. A retailer can include purchase cost, packaging, and per-unit handling. Compare products using the same cost basis and keep sales tax or GST collected on behalf of the government outside revenue. Quantity changes total profit, while margin stays the same when unit costs and prices stay constant.

Example

A product costs $60 and sells for $100. Profit is $40 per unit, margin is 40%, and markup is about 66.67%. Ten units earn $400 before other costs.

Frequently asked questions

How do margin and markup differ?

Margin divides profit by selling price. Markup divides profit by cost.

What happens if cost or price is zero?

The calculator displays an undefined percentage for the formula with a zero denominator. The dollar or rupee profit remains calculable.

Does changing currency convert prices?

No. It changes the display currency for the values you entered.

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