Margin Calculator
Work out profit margin from cost and selling price.
Margin
Work out profit margin from cost and selling price.
Margin
25%
- Profit: 25.00
Margin is profit as a percentage of selling price. It is not the same as markup, which is profit as a percentage of cost.
Looking for the other side of the sale? Markup Calculator →
How it works
Enter the cost and the selling price.
Profit is the selling price minus the cost. Margin is that profit as a percentage of the selling price.
Margin is profit as a percentage of selling price, not cost — that is markup. The two describe the same sale differently and are not interchangeable.
Formula
profit = selling price − cost
margin % = (profit ÷ selling price) × 100
Worked example: Cost 75, selling price 100 gives a margin of 25%
More examples and edge cases
- The same sale (cost 75, selling price 100) is a markup of 33.333333% on cost, but a margin of 25% on selling price
- Selling below cost gives a negative margin: cost 120 and selling price 100 is a loss of 20.00, or -20%
- A selling price of zero gives no result, because margin divides by the selling price