Profit Margin & Markup Calculator
Calculate profit, margin, markup, target selling price, and total profit by quantity with clear formulas.
Business inputs are processed locally and are not stored.
Calculation
Margin divides profit by selling price. Markup divides profit by cost. The two percentages are not interchangeable.
Profit margin formula
Margin = (Selling price − Cost) / Selling price × 100. Margin answers “what share of revenue remains as profit?” A 50% markup on a 100 cost produces a 150 price and a 33.33% margin.
Markup formula
Markup = (Selling price − Cost) / Cost × 100. Markup answers “how much was added to cost?” A target margin of 40% requires a price of cost / (1 − 0.40), not cost × 1.40.
Frequently asked questions
Why are rounded prices recalculated?
If a target price is rounded to the nearest currency unit, the actual margin changes slightly. The calculator recalculates the displayed actual margin from the rounded price.
Is this net profit?
Only if the cost input includes every relevant expense. Otherwise the result is gross profit based on the costs you entered.
Why is a 100% target margin rejected?
The formula divides by 1 − margin. At 100%, the denominator is zero and no finite selling price exists.