Profit Margin Calculator
Margin is the extra amount as a percent of selling price. Cost 150 and price 200 is a 25% margin. A 100% margin is impossible, because that would mean the cost is zero relative to the price.
How this is calculated
Margin percent is profit divided by selling price. A price from a target margin is cost divided by one minus the margin rate.
margin % = ((price − cost) / price) × 100
- From cost 150 and price 200, profit is 50 and margin is 50 / 200 × 100 = 25%.
- From cost 75 and a 40% margin, price is 75 / 0.60 = 125.
- A margin of 100% or more cannot produce a finite price, because you would divide by zero or a negative factor.
This is the what-percent formula with price as the whole. Markup uses cost as the whole instead.
Not the same as
Margin looks like markup until you check the denominator.
- Markup Markup divides by cost. Cost 100 and price 150 is a 50% markup and a 33.333% margin. Open the markup calculator
Related tools
Margin questions
25%. Profit 50 divided by price 200.
125. Divide 75 by 0.60.
A 100% margin would mean the entire price is profit, so cost is zero. The calculator rejects a margin of 100 or more when building a price.
Only if cost and price make both formulas agree, which they usually do not. Cost 150 and price 200 is 25% margin and 33.333% markup.
33.333…%. 50 / 150 × 100.
This page focuses on margin. Profit percentage also reports profit on cost.