Use this margin calculator to measure how profitable a product, service or sales offer really is. Enter your cost price and selling price to instantly see gross profit, profit margin and markup. It is especially useful for pricing strategy, ecommerce, wholesale, retail and business planning when you want to compare several price points before launching an offer.
Margin is profit divided by selling price. Markup is profit divided by cost price. They measure profitability from two different reference points.
You can increase margin by lowering costs, raising selling price, or improving product mix. This calculator helps you test different pricing scenarios instantly.
Not exactly. Profit is the money earned after subtracting cost from selling price, while margin expresses that profit as a percentage of selling price. Both are useful, but margin is often better for comparing products.
Formulas: Profit = Selling Price − Cost Price | Margin % = Profit / Selling Price × 100 | Markup % = Profit / Cost Price × 100
Example: Cost price = 80, selling price = 120. Profit = 40. Margin rate = 33.33%. Markup rate = 50%.
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