Calculate your profit margin
Calculating profit margin divides profit by revenue (selling price) and multiplies by 100. The Margin Calculator subtracts cost from price, then divides that profit by price. Cost $100 and price $150 produce $50 profit and a 33.3% margin. QuickCalculators reports that margin beside the dollar profit so pricing conversations stay concrete.
Zero or negative prices break the ratio; enter realistic cost and price pairs.
Calculate the markup instead
Calculating the markup divides the same profit by cost instead of price. The Margin Calculator returns markup from the identical cost and price inputs. On $100 cost and $150 price, markup is 50% while margin is 33.3%. QuickCalculators shows both so a target "50%" can be checked for whether it meant markup or margin.
Retail and wholesale teams often quote different conventions; match the base before comparing quotes.
Tell margin apart from markup
Telling margin apart from markup prevents pricing mistakes. The Margin Calculator keeps both labels on one result so the 50% markup versus 33.3% margin pair is visible. Using margin language for a markup target underprices the item. Using markup language for a margin target overstates profit share of sales.
QuickCalculators treats the pair as two views of one transaction.
Find price, cost, or profit
Finding price, cost, or profit starts from any two known values. The Margin Calculator focuses on cost and price as inputs and derives profit, margin and markup. Profit is price minus cost. Margin is profit over price. Markup is profit over cost.
QuickCalculators keeps those three relationships aligned on every run.
For markdowns off a list price, use the Markdown Calculator on QuickCalculators.
Read the disclaimer
QuickCalculators labels Margin Calculator results as estimates for information only. The Margin Calculator is not accounting or tax advice. Confirm inventory costing and reporting rules with a professional.
Correct a common misconception: a 50% markup equals a 50% margin
A common misconception is that a 50% markup equals a 50% margin. On the same $100 cost and $150 price, markup is 50% and margin is 33.3%. The Margin Calculator shows both percentages to correct that mix-up.
Frequently asked questions
How is profit margin calculated?
Profit margin is calculated as profit divided by selling price, times 100. The Margin Calculator computes it from cost and price.
How is markup calculated?
Markup is calculated as profit divided by cost, times 100. The Margin Calculator returns markup beside margin.
What is the difference between margin and markup?
Margin uses selling price as the base; markup uses cost as the base. The Margin Calculator displays both for the same profit.
What margin comes from a 50% markup?
A 50% markup on cost produces a 33.3% margin when price is 1.5 times cost. The Margin Calculator demonstrates that pair with the $100 / $150 example.
Can margin be negative?
Margin is negative when price is below cost. The Margin Calculator still reports the percentage so losses are visible.
Summarize the Margin Calculator
The Margin Calculator turns cost and selling price into profit, margin and markup so the two percentages are never confused. QuickCalculators keeps the arithmetic exact and labels the output as an estimate for education, not formal accounting advice.