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Profit Margin Calculator

Calculate gross margin, markup and profit from cost and selling price.

Your details

How the profit margin calculator works

Margin is profit as a share of revenue; markup is profit as a share of cost. They are always different numbers for the same sale.

Formula

margin = (price − cost) ÷ price × 100

Worked example

A $100 product costing $40 has a 60% margin and a 150% markup.

Frequently asked questions

Margin or markup — which should I quote?

Retail and finance normally speak in margin. Wholesale pricing often uses markup.

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