Profit Margin Calculation
Calculate profit margin and markup from cost and selling price.
This calculation provides an estimated result; current legislation and official calculations prevail. For binding transactions, consult your financial advisor or the relevant institution.
$
$
Result
%33,3333
Profit margin: 33,3333% · Net profit: $50
Result in all units
Step-by-step solution
What Is Profit Margin?
Profit margin is the ratio of the profit earned from a sale to the selling price. It shows the profitability of a product or business as a percentage.
How is it calculated?
How Is It Calculated?
Profit margin (%) = ((sale − cost) ÷ sale) × 100
- Enter the selling price and the cost.
For example, 100 $ cost, 150 $ sale: ((150−100)÷150)×100 = 33,3%.
Frequently Asked Questions
What is the difference between profit margin and markup?
Margin relates profit to the sale, while markup relates it to the cost; the two values differ for the same product.