What is the difference between profit margin and markup?

Profit margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50% markup gives a 33% profit margin. They measure the same profit from different reference points.

Free Profit Margin Calculator Online — Markup & Pricing Tool

Enter Cost & Target Margin

Currency

Cost Price

What you pay / spend

Target Margin (%)

Your desired profit margin

Profit Margin
0.00%
% of selling price

Markup

0.00%

% of cost price

Gross Profit

$0.00

Revenue minus cost

Selling Price

$0.00

To achieve margin

Price Breakdown — Visual

Cost

Profit

Cost: $0.00

Profit: $0.00

Price: $0.00

Margin vs Markup — Live Comparison

Scenario	Markup %	Margin %	Profit on $100 cost	Price for $100 cost

Bulk Pricing — Different Margin Targets

Based on your cost price

Target Margin	Required Markup	Selling Price	Profit Amount

Frequently Asked Questions

What is the difference between margin and markup?

Profit margin is profit as a % of selling price. Markup is profit as a % of cost. A 50% markup gives a 33% profit margin. Same profit, different reference points.

How do I calculate gross profit margin?

Gross Profit Margin = (Selling Price − Cost) ÷ Selling Price × 100. Example: Cost $70, Selling Price $100 → Margin = (100−70)÷100×100 = 30%.

What is a good profit margin?

Below 10% is danger zone. 10–20% is below average. 20–40% is good for most businesses. Above 40% is excellent. Retail typically runs 20–40% while SaaS reaches 60–80%.

How do I find selling price from cost and margin?

Selling Price = Cost ÷ (1 − Margin%). Example: Cost $70, target 30% margin → Price = 70 ÷ 0.70 = $100. Use the Cost → Price tab above.

Is this profit margin calculator free?

Yes. Toolbox Profit Margin Calculator is completely free — no login, no signup, no usage limits. All 4 modes and the bulk pricing table are free forever.

What is the markup formula?

Markup % = (Selling Price − Cost) ÷ Cost × 100. Example: Cost $70, Selling Price $100 → Markup = (100−70)÷70×100 = 42.86%.

Free Profit Margin Calculator — Markup & Pricing Tool

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