Worked example
Here is a simple Profit Margin example:
C = 80; P = 120 → 40; 33.33%; 50%.Profit Margin & Markup Calculator
See profit, margin, and markup together before you set a price.
Margin40%
Markup66.7%
Revenue€100.00
Before tax and indirect overhead.
Practical guide
Profit Margin & Markup Calculator
Common mistakes to avoid
- Include every direct cost you can identify.
- Use margin when comparing profitability across products.
- Recalculate when supplier costs change.
Frequently asked questions
What does the Profit Margin calculate?
See profit, margin, and markup together before you set a price.
Which formula is used?
Profit = price − cost Margin = profit ÷ price × 100 Markup = profit ÷ cost × 100
Can I rely on this result?
Use the result as a planning estimate. Check important financial, tax, legal, investment, or health decisions with a qualified professional.