Profit Margin Calculator
Enter cost and price to get profit margin and markup.
Profit margin
30%
- Profit
- SAR 30
- Markup
- 42.9%
How it works
Margin measures profit as a % of price; markup measures it as a % of cost. They're different — don't confuse them when pricing.
Formula
Margin = (price − cost)/price × 100 · Markup = (price − cost)/cost × 100
Worked example
Cost 70, price 100: margin 30%, markup 42.9%.
FAQ
- Which to display?
- Margin is more standard in financial reports.
- How to hit 30% margin?
- Price = cost / (1 − 0.30).
- Includes tax?
- No — work with pre-tax figures.