Profit Margin Calculator
Enter what an item costs you and what you sell it for. You get the profit, the margin (profit as a share of the price) and the markup (profit as a share of the cost).
Profit Margin
Margin, markup and profit from cost and price
Profit margin40.0%
Markup66.7%
Profit40.00
它是如何运作的
- Margin = (price − cost) ÷ price × 100.
- Markup = (price − cost) ÷ cost × 100.
- Markup is always higher than margin for the same product.
- To hit a target margin: price = cost ÷ (1 − margin).
Worked example: cost 60, price 100
- 1Profit: 100 − 60 = 40.
- 2Margin: 40 ÷ 100 = 40%.
- 3Markup: 40 ÷ 60 = 66.7%.
40% margin — 66.7% markup
Margin vs markup
| Margin | Markup |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 33.3% | 50% |
| 50% | 100% |
常见问题
What is the difference between margin and markup?
Margin compares profit to the selling price; markup compares profit to the cost.
How do I price for a 30% margin?
Divide the cost by 0.7. An item costing 70 should sell for 100.
What is a good profit margin?
It depends on the industry — retail often runs 20–50% gross margin, groceries much lower.
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