Calculator

Profit Margin Calculator

Calculate profit, profit margin and markup from your cost and selling price. Free and instant.

Profit
$60.00
Profit margin
60.0%
Markup
150.0%

Formula: Profit = price − cost. Margin = profit ÷ price × 100. Markup = profit ÷ cost × 100.

FAQ

Profit Margin Calculator — questions

How do I calculate profit margin?+

Profit margin = (price − cost) ÷ price × 100. A $100 item costing $40 has a $60 profit and a 60% margin.

What is the difference between margin and markup?+

Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The same $60 profit on a $40 cost is a 60% margin but a 150% markup. Both are shown here.

Why does margin matter for ad campaigns?+

Your profit margin sets your break-even ROAS (100 ÷ margin). Thin margins demand a higher return on ad spend to stay profitable.