Profit Margin Calculator

Enter your cost and selling price to instantly see profit, net margin, and markup — perfect for pricing products and planning discounts.

Profit

$20

Net margin

20%

Markup

25%

Formulas

Profit = Selling price − Cost = 100 − 80

Net margin = Profit ÷ Selling price = 20%

Markup = Profit ÷ Cost = 25%

Margin vs markup

Margin is profit as a percentage of the selling price you receive. Markup is profit as a percentage of what you paid. For a product bought for $80 and sold for $100, margin is 20% but markup is 25%.

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Frequently asked questions

Is margin the same as markup?

No. Margin divides profit by the selling price; markup divides profit by the cost. Margin is always smaller than markup for the same sale because the selling price is larger than cost.

How do I add a margin to a cost?

To hit a target margin, divide the cost by (1 minus the margin), e.g. to keep 30% on a $80 cost, sell at $80 ÷ 0.7 ≈ $114.29.

Why is my margin negative?

A negative margin means the selling price is below cost — you're selling at a loss. Check your cost includes materials, labor, shipping, and platform fees.

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