Reference formulas and worked examples below keep their stated units. Monetary examples use USD; dimensional examples use US customary units unless labeled otherwise. Metric calculator inputs are converted to these reference units before calculation. Choosing another currency does not convert example amounts or exchange money.
How to use this margin calculator
Calculate profit margin, markup, and unit profit from selling price and cost. Understand the difference between margin and markup.
How the calculation works
Profit = selling price − cost. Margin = profit ÷ selling price × 100.
Markup = profit ÷ cost × 100. Markup is undefined at zero cost, even though margin remains defined.
Worked example
A $100 price and $60 cost produce $40 profit, a 40% margin, and a 66.67% markup.
Limits and assumptions
Calculates unit economics from entered costs. It does not add tax, platform fees, shipping, or overhead automatically.
Frequently asked questions
Why are margin and markup different?
Margin divides profit by selling price; markup divides by cost.
Can profit be negative?
Yes. If cost exceeds selling price, the result shows a loss.
What happens at zero cost?
Margin is 100% for a positive selling price; markup is undefined.