Profit Margin Calculator
Find profit and margin from cost and selling price.
Currency changes the display only. No exchange-rate conversion is applied.
Results
Profit margin
- Profit
- 30 USD $
- Cost
- 70 USD $
- Selling price
- 100 USD $
The result reflects only the cost you enter. Include relevant costs consistently; fees, taxes, discounts and overhead are not added automatically. Changing the currency label does not apply an exchange rate.
Formula · How it works
Formula
Profit = Selling price − Cost; Margin (%) = Profit / Selling price × 100Profit = selling price − cost. Profit margin (%) = profit / selling price × 100. Margin uses selling price as its denominator; markup uses cost. They describe the same profit relative to different amounts.
Worked example
With a cost of 70 and a selling price of 100, profit is 30 and profit margin is 30%. The corresponding markup is approximately 42.857%. If the selling price falls to 50, profit is −20 and margin is −40%.
How it works
Profit margin shows how much of the selling price remains after the entered cost. A 30% margin means 30 of every 100 in sales remains before any expenses that are not included in that cost.
Common questions
What is profit margin?
Profit margin is profit expressed as a percentage of the selling price. In this calculator, profit is the selling price minus the cost you enter.
How is profit margin calculated?
Subtract cost from selling price, divide the difference by selling price and multiply by 100. A cost of 70 and a selling price of 100 give a 30% margin.
What is the difference between margin and markup?
Margin divides profit by selling price, while markup divides profit by cost. With cost 70 and selling price 100, margin is 30% and markup is about 42.86%.
Can profit margin be negative?
Yes. Selling below cost produces a negative profit and margin. For example, cost 70 and selling price 50 give profit −20 and margin −40%.
Can I enter zero cost or a zero selling price?
Zero cost is allowed and gives a 100% margin when the selling price is positive. Selling price must be greater than zero because it is the denominator in the margin formula.