Calculate profit margin, markup, and gross profit from cost and selling price.
Margin = (Selling Price - Cost) ÷ Selling Price × 100
Markup = (Selling Price - Cost) ÷ Cost × 100
Example: Buy at $10, sell at $25 → Margin is 60%, Markup is 150%
Profit margin tells you what percentage of your selling price is actual profit. A 60% margin means you keep $0.60 of every dollar in revenue after covering costs.
The formula is simple: (Selling Price - Cost) ÷ Selling Price × 100
Margin is based on selling price. Markup is based on cost. A product that costs $10 and sells for $25 has a 60% margin but a 150% markup. Both describe the same profit — they just use different denominators.
Most businesses use margin for financial reporting and markup for pricing decisions.