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Financial calculators and cash flows · Profit margin
Profit margin. Margin is profit as a share of the selling price; markup is profit as a share of cost.
Profit margin
Mathematical examples based on your inputs; taxes, fees and market forecasts are not included.
Results are for study and planning. Check decisions about real money with a qualified professional.
Your calculation
- Profit
- 20
- Margin (%)
- 20
- Markup (%)
- 25
How the calculation works
Margin is profit as a share of the selling price; markup is profit as a share of cost.
A worked example
- Cost
- 80
- Selling price
- 100
Step by step
- Profit = Selling price − Cost = 100 − 80 = 20
- Margin (%) = 20 ÷ 100 = 20 %
- Markup (%) = 20 ÷ 80 = 25 %
Margin divides profit by the selling price, markup divides it by the cost: a profit of 20 on a cost of 80 is a 20% margin but a 25% markup.
If one input changes
- Selling price = 88: Margin (%) = 9.09 · Markup (%) = 10
- Selling price = 120: Margin (%) = 33.33 · Markup (%) = 50
- Selling price = 160: Margin (%) = 50 · Markup (%) = 100
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