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Profit Margin Calculator

Calculate profit, profit margin and markup from your cost and selling price.

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HOW IT WORKS

How the Profit Margin Calculator works

1

Enter your cost

Add the cost price of the product or service.

2

Enter selling price

Add the price charged to the customer.

3

Compare margin and markup

See profit, margin and markup side by side so the two percentages are not confused.

COMMON QUESTIONS

Frequently asked questions

What is profit margin?

Profit margin is profit divided by selling price, expressed as a percentage.

What is markup?

Markup is profit divided by cost price, expressed as a percentage.

Are margin and markup the same?

No. They use different denominators, so the percentages are different even when cost and selling price are unchanged.

What is a good profit margin?

There is no single good margin for every business. Margins vary substantially by industry, costs, pricing model and business stage.

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