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Profit margin calculator

Calculate the profit margin from a product's cost and sale price.

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Margin

20%

This calculator is for informational purposes only and does not constitute financial advice.

Calculate the profit margin of a product or service from its cost and sale price.

Calculates margin as (price - cost) / price x 100, i.e. what percentage of the sale price is profit.

Use cases

  • Setting prices that guarantee a target margin.
  • Comparing the profitability of different products.
  • Analyzing the financial health of a business line.

How it works

  1. 1

    Enter the cost

    Type the production or acquisition cost.

  2. 2

    Enter the sale price

    Type the price it's sold for.

Frequently asked questions

How is it different from markup?
Margin is calculated on the sale price; markup is calculated on the cost. For the same product, margin is always lower than markup.
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