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Profit is the core question in any sale, but it's asked two ways: "if I mark up my cost by this much, what's my selling price?" and "if I sell at this price, what profit do I make?" This tool does both. It also surfaces a trap that catches many sellers: markup and margin are different percentages for the same sale.
Pick the direction, enter your numbers, and get the sale price or the profit and margin instantly.
Profit Margin Calculator: step-by-step worked example
A product that costs 60.00 sells for 85.00.
- Cost
- 60.00
- Sale Price
- 85.00
- 1
Profit amount
Profit = Sale price − Cost
85.00 − 60.00 = 25.00
- 2
Markup (profit on cost)
Markup = Profit ÷ Cost × 100
25.00 ÷ 60.00 × 100 = 41.67%
- 3
Profit margin (on sale price)
Margin = Profit ÷ Sale price × 100
25.00 ÷ 85.00 × 100 = 29.41%
- 4
Check: markup → margin
Margin = Markup ÷ (100 + Markup) × 100
41.67 ÷ 141.67 × 100 = 29.4118%
- Cost60.0070.6%
- Profit25.0029.4%
- On cost (markup)41.67%
- On sale price (margin)29.41%
Good to know: Markup (on cost) and margin (on price) are often confused: a 40% markup is only a 28.6% margin. Price with markup; compare profitability with margin.
Profit Margin Calculator — how it works
Two directions
Cost + margin → sale price: multiply the cost by (1 + margin). A cost of 800 with a 35% markup sells for 800 × 1.35 = 1,080.
Profit from cost and sale price: profit = sale − cost; margin = profit ÷ cost. Buy at 800, sell at 1,080, and the profit is 280, a 35% markup.
Markup vs margin — the trap
The same sale has two different percentages: - Markup: profit ÷ COST. In the example, 280 ÷ 800 = 35%. - Margin: profit ÷ SALE price. Here, 280 ÷ 1,080 = 25.9%.
So "35% markup" and "26% margin" describe the identical deal. Suppliers usually talk markup (on cost); accountants talk margin (on revenue). Mixing them up leads to real pricing mistakes.
Gross, not net
This is the gross profit on the item (sale − cost). Your true net profit also subtracts overheads — rent, staff, shipping, fees and tax. Price with enough margin to cover those, not just the item cost.
Where it helps
- Setting a selling price from a target markup
- Checking the margin a given price actually yields
- Comparing supplier quotes and reseller economics
Worked example
You buy an item for 800 and want a 35% markup: the sale price is 800 × 1.35 = 1,080, a profit of 280. But watch the two percentages — that 35% is the markup on cost; expressed as a margin on the sale price it's 280 ÷ 1,080 = 25.9%. Telling a customer "I work on a 26% margin" and telling a supplier "I add 35%" describe the exact same 280 of profit. Knowing which base you're quoting against is what keeps your pricing consistent.
Frequently asked questions
How do I calculate profit?+
Profit = sale price − cost. The margin is profit ÷ sale price and the markup is profit ÷ cost. Buy at 800, sell at 1,080: 280 profit, 35% markup, 25.9% margin. The tool works in both directions.
How do I find a sale price from a target markup?+
Multiply the cost by (1 + markup): 800 with a 35% markup is 800 × 1.35 = 1,080. Choose the "Cost + margin → sale price" mode.
What is the difference between markup and margin?+
Markup is profit relative to COST; margin is profit relative to the SALE price. The same deal is a 35% markup and a 25.9% margin — different bases, same profit.
Why is margin smaller than markup?+
Because the sale price (margin's denominator) is larger than the cost (markup's denominator). Dividing the same profit by a bigger number gives a smaller percentage.
Is this my net profit?+
No — this is gross profit (sale − cost). Net profit also subtracts overheads like rent, staff, shipping, fees and tax. Price to cover those, not just the item cost.
Can I calculate a loss with this?+
Yes — if the sale price is below cost, the result is negative profit, i.e. a loss. Enter the numbers and a negative outcome shows the shortfall.
About this page
- Publisher:
- Kalkoro — Teknolojig Bilişim Teknolojileri A.Ş., İstanbul
- Written by:
- Furkan Tur — Editor (Finance, loans, tax, accounting, commerce, legal, employment)
- Reviewed by:
- Ahmet Tur — Editor
Parameters come from official sources; the last update date is shown at the bottom of the page.
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Results are for information only and are not financial, legal or investment advice. For official matters the relevant authority's calculation and professional advice prevail.
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