Enter Your Numbers

Formulas Used

Profit Margin = (Price - Cost) / Price × 100

Markup = (Price - Cost) / Cost × 100

Profit Margin50.00%
Markup100.00%
✓ Profitable
Cost per Unit$50.00
Selling Price$100.00
Profit per Unit$50.00

Margin vs. Markup Explained

Profit Margin

Percentage of the selling price that is profit. A 50% margin means half of your revenue is profit.

Markup

Percentage added to cost to get selling price. A 100% markup means you double your cost.

Key Insight: A 50% margin equals a 100% markup. They measure the same profit differently!