Profit Margin Calculator

Profit margin and markup both describe the same sale, but from different reference points. Margin expresses profit as a percentage of the selling price (how much of what the customer paid is profit), while markup expresses it as a percentage of cost (how much was added on top of cost to set the price). They're only equal when profit is zero, and the gap between them grows as margin gets larger — a 50% margin actually corresponds to a 100% markup.

This calculator works from cost and selling price and shows both figures side by side, so you can see profit from whichever angle is more useful — margin is common for comparing overall business profitability, while markup is common for setting a price from a known cost.