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How the calculation works
Profit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100.
KEY FORMULAProfit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100.
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Worked example
If cost is 60,000 and price is 100,000, gross profit = 40,000, margin = 40%, markup = 66.67%.
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Before you rely on this result
Taxes, overhead and financing costs are excluded unless included in your cost input.
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Informational tool. It does not replace testing, measurement or professional advice when needed.
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Frequently asked questions
Are margin and markup the same?+
No. Margin divides profit by selling price; markup divides it by cost.
Can it show a loss?+
Yes. Selling below cost results in negative profit and margin.