DocomintProfit Margin Calculator
Calculate profit margin and markup percentage from revenue and cost.
Margin and markup are both "profit as a percentage," but of different bases — margin is profit divided by revenue (what most people mean by "profit margin"), while markup is profit divided by cost (what most people mean when pricing an item over its cost). Mixing the two up is one of the most common pricing mistakes in small business, so this shows both side by side from the same two inputs.
Example: An item that costs $800 and sells for $1,200 has a $400 profit — a 33.3% profit margin (400/1200) but a 50% markup (400/800), two very different-looking numbers describing the exact same sale.
How it works
- Enter revenue and cost
- Press Calculate
- Profit, profit margin, and markup all appear instantly, calculated on your device
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price (revenue); markup is profit as a percentage of the cost. The same $400 profit on a $1,200-revenue, $800-cost sale is a 33.3% margin but a 50% markup — two different numbers describing the identical transaction.
How do I price a product to hit a target profit margin?
Divide the cost by (1 − target margin as a decimal). For a $50 cost item targeting a 40% margin: $50 / (1 − 0.40) = $83.33 selling price — pricing at cost plus 40% directly would actually give you a lower margin than intended.
Is my numbers uploaded anywhere?
No — Profit Margin Calculator runs entirely in your browser using JavaScript/WebAssembly. Your numbers is never sent to a server.