Profit Margin Calculator
Calculate profit, loss, and markup percentages for your business
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Profit Margin Calculator
Calculation Result
Enter valid prices to see the calculation
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About Profit Margin Calculator
Our Profit Margin Calculator helps you determine the profit or loss on your products or services. It calculates profit amount, profit percentage, markup, and markup percentage based on the cost price and selling price you provide.
Understanding profit margins is crucial for any business. It helps you price your products correctly, evaluate your business performance, and make informed decisions about your pricing strategy.
With our tool, you can:
- Calculate profit or loss amount based on cost and selling prices
- Determine profit or loss as a percentage of the cost price
- Calculate markup and markup percentage
- Understand the difference between profit percentage and profit margin
- Copy the calculation results for your records
Understanding Profit vs. Markup
Profit Percentage
Profit % = (Profit / Cost Price) × 100%
Profit percentage is calculated relative to the cost price. It tells you how much profit you've made compared to what you paid for the item.
Example: If you buy an item for $100 and sell it for $150, your profit is $50, and your profit percentage is 50%.
Profit Margin
Profit Margin = (Profit / Selling Price) × 100%
Profit margin is calculated relative to the selling price. It tells you what percentage of your revenue is profit.
Example: If you sell an item for $150 that cost you $100, your profit is $50, and your profit margin is 33.33%.