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Profit Margin & Markup Calculator

E-Commerce & Retail

Calculate your profit margin and markup percentage from cost and selling price.

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USD
$0.00$1,000,000.00
USD
$0.01$1,000,000.00

Profit Margin

60.0%

Profit as a percentage of selling price.

USD

Profit

$30.00

Your dollar profit per unit.

Markup

150.0%

Profit as a percentage of cost.

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Odeh Ahwal

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Odeh Ahwal
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Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit as a percentage of selling price; markup is profit as a percentage of cost. They use the same dollar profit but different denominators, so a 50% markup is not the same as a 50% margin — margin is always the smaller number of the two.

Which should I use for pricing decisions?

Margin is generally more useful for understanding overall profitability and comparing against industry benchmarks, while markup is often used as a simple rule-of-thumb for setting prices from cost (e.g. "always mark up 2x").

How do I convert between margin and markup?

Margin = Markup / (1 + Markup). Markup = Margin / (1 - Margin). For example, a 100% markup equals a 50% margin.

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