Calculators
Profit Margin Calculator
Confusing margin with markup is how a business prices itself into a loss.
- Runs in your browser
- Nothing uploaded
The tool
Enter what it costs you and what you sell it for.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Checking whether a price hits the margin you intended
- Converting a supplier markup into the margin it implies
- Setting prices for a new product line
- Sanity-checking a quote before sending it
- Explaining to a client why margin and markup differ
About this tool
Margin and markup are different numbers
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. They describe the same transaction and produce different percentages, and the gap widens as the numbers grow. A 50 per cent markup is a 33 per cent margin. A 100 per cent markup is a 50 per cent margin.
This matters because quoting one while meaning the other is a genuine way to lose money. A business that targets a 40 per cent margin but applies a 40 per cent markup is charging materially less than it intended on every single sale.
Which one to use
Retail and finance generally talk in margin, because it answers what share of revenue you keep. Trades and wholesale often work in markup, because it answers what to add to a known cost. Neither is wrong; what is wrong is mixing them in the same conversation without saying which you mean.
What this does not include
Only the direct cost you enter. It does not know about overheads, your time, payment processing fees, returns, tax or the cost of winning the customer. A healthy looking margin on a unit basis can still be a loss once those are counted, which is why the number here is a starting point rather than an answer.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
Margin is profit over the selling price. Markup is profit over the cost. A 50 per cent markup is a 33 per cent margin.
Retail and finance usually use margin. Trades and wholesale often use markup. Be explicit about which you mean.
No. Enter figures excluding VAT, or the margin will be wrong.
No. It uses only the direct cost you enter, so treat the result as a unit figure rather than a profit.
No. The calculation happens in your browser.
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