Profit Margin Calculator
Calculate profit margin, profit amount, and markup rate to analyze product profitability
Input
$
$
Profit Margin
33.33%
Profit Amount
$50
Markup Rate
50%
Formula
Profit Margin = (Selling Price − Cost Price) ÷ Selling Price × 100%, Markup Rate = (Selling Price − Cost Price) ÷ Cost Price × 100%
FAQ
What's the difference between profit margin and markup?
Margin is based on selling price; markup is based on cost. Example: cost 100, price 150, margin = 33.3%, markup = 50%.
What is a healthy profit margin?
It varies by industry: retail typically 10-30%, restaurants 15-40%, software can reach 60-80%.
Can profit margin be negative?
Yes. When selling price is lower than cost, the margin is negative, indicating a loss. This is common for promotions or clearance sales.