Profit Margin Calculator
100% PrivateBusiness & Finance UtilitiesSeparate margin from markup and calculate both from cost and selling price.
Runs entirely in your browser. Your input is not uploaded to Ovatly or anywhere else.
Margin is profit as a share of the selling price; markup is profit as a share of the cost. They are different numbers for the same profit.
- 1Enter the cost per unit and the selling price per unit.
- 2Optionally enter units sold to see revenue, total cost and total profit.
- 3Use the target fields to find the price needed for a given margin or markup at the same cost.
Profit per unit is 20. The margin is 20.00 percent (20 out of the 100 selling price) and the markup is 25.00 percent (20 on top of the 80 cost). On 250 units that is 25,000 of revenue, 20,000 of cost and 5,000 of profit.
- Margin can never reach 100 percent unless the cost is zero; that is why the price needed for a target margin rises steeply as the target approaches 100.
- Percentages are shown to 2 decimal places; the underlying figures are not rounded before display.
- Cost here means whatever you put in it. If you leave out overheads, packaging or platform fees, the margin shown will flatter the product.
They divide the same profit by different bases. Margin divides by the selling price, markup by the cost. A 25 percent markup always equals a 20 percent margin.
About this tool
The Profit Margin Calculator separates the two numbers sellers constantly mix up: margin, which is profit as a share of the selling price, and markup, which is profit as a share of the cost. Enter a cost and a price to see both, the profit per unit and totals for any number of units, plus the price you would need for a target margin or markup.
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Part of Ovatly's free tools in Business & Finance Utilities.