Profit Margin Calculator
Calculate profit amount and profit margin percentage from cost price and selling price.
Profit
- Profit = Selling Price − Cost Price
Profit Margin
- Margin % = Profit ÷ Selling Price × 100
If cost is 80 and selling price is 100, profit is 20 and profit margin is 20%.
Enter cost price and selling price. The calculator subtracts cost from selling price and divides profit by selling price.
Use it to understand how much of your selling price remains as gross profit.
Do not calculate margin by dividing profit by cost. That gives markup, not margin.
Examples
Example 1: Basic Margin
Cost: 80
Selling price: 100
Profit: 20
Example 2: Larger Sale
Cost: 150
Selling price: 200
Profit: 50
Example 3: Low Margin
Cost: 95
Selling price: 100
When to Use This Calculator
- Check product profitability
- Compare product lines
- Prepare business pricing
- Estimate gross margin
- Review supplier price changes
How It Works
- Enter cost price.
- Enter selling price.
- The calculator returns profit and margin percentage.
Common Mistakes
- Using cost as the base for margin
- Ignoring overhead expenses
- Confusing gross and net profit
- Entering selling price lower than cost without noticing
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Frequently Asked Questions
What is profit margin?
Profit margin is profit expressed as a percentage of selling price.
How do I calculate profit?
Subtract cost price from selling price.
What is a good profit margin?
It depends on the industry, product type, and operating costs.
Is margin the same as markup?
No. Margin uses selling price as the base, while markup uses cost as the base.