Finance calculator
Profit Margin Calculator
Calculate profit margin from cost and selling price.
About the profit margin calculator
The profit margin calculator finds profit margin and markup from cost and selling price.
How to use this calculator
- 1
Enter cost
Enter the cost of the product or service.
- 2
Enter selling price
Enter the selling price.
- 3
View results
See profit, margin percentage, and markup percentage.
How the calculation works
Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100.
Example: Cost 60, sell 100: profit 40, margin 40%, markup 66.7%.
How financial calculations work
Most finance calculators use standard formulas: amortization for loans, compound interest for savings, and present/future value for investments. Results are estimates — actual terms may vary based on lender fees, credit score, taxes, and market conditions. Always consult a financial advisor for major decisions.
Understanding key financial terms
APR (Annual Percentage Rate) includes fees and interest. APY (Annual Percentage Yield) reflects compound interest. DTI (Debt-to-Income) ratio measures monthly debt payments against gross income. Lenders typically prefer DTI below 36%. CAGR (Compound Annual Growth Rate) smooths investment returns over time.
Important limitations
This tool provides a mathematical estimate based only on the values entered. It does not account for regulations, taxes, lender fees, market conditions, or individual circumstances. Results are for planning purposes only — consult a qualified professional for regulated, medical, financial, or construction decisions.
Frequently asked questions about profit margin calculator
How accurate is the profit margin calculator?+
The calculation follows the displayed formula and retains full numeric precision before formatting the result.
Can I use the result professionally?+
Use it as a planning estimate. Confirm regulated, medical, financial, or construction decisions with a qualified professional.