Profit Margin Calculator
Find the margin on the selling price from your cost and final price.
How to use
- 1Enter the cost and the selling price.
- 2See the percentage margin.
About
Calculates the profit margin over the selling price, helping you price products correctly.
How to calculate profit margin
UtilNexo's profit margin calculator shows the percentage of the sale price that represents profit, helping you price products and services.
The formula is: margin = (profit ÷ sale price) × 100. If you buy for $80 and sell for $100, the profit is $20 and the margin is 20 ÷ 100 × 100 = 20%.
Profit margin differs from markup: margin looks at profit over the sale price, while markup looks at it over cost. Understanding this avoids mispricing.
Examples
- 80, 100 → Profit: $20.00 / Margin: 20.00%.
- 50, 75 → Profit: $25.00 / Margin: 33.33%.
Limitations
- The calculation considers only cost and price; it does not include taxes, shipping, or fixed expenses.
- A high margin does not mean high profit in absolute terms if sales volume is low.
How to use the profit margin calculator
- 1Enter the cost of the product or service.
- 2Type the sale price.
- 3See the profit and margin.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit over the sale price; markup is the multiplier applied over cost.
How do I calculate the margin manually?
Subtract cost from the sale price, divide by the sale price, and multiply by 100.
What margin is considered good?
It depends on the sector. Retail margins are usually lower than service margins, for example.
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