Profit Margin Calculator
Enter the complete cost of the item and its selling price in the same currency. Subtract recoverable tax consistently from both figures if you want a tax-exclusive comparison.
- Separate margin from markup
- Show losses as negatives
- Handle zero denominators
How it works
Enter the complete cost of the item and its selling price in the same currency. Subtract recoverable tax consistently from both figures if you want a tax-exclusive comparison.
Choose the right inputs
Profit is selling price minus cost. A negative answer is a loss on that sale; it is not converted into a positive percentage to make the business look profitable.
Understand the output
Margin expresses profit as a share of revenue, while markup expresses it as a share of cost. These denominators explain why a 25% markup does not produce a 25% margin.
Use the result carefully
Zero cost makes markup undefined and a zero selling price makes margin undefined. The report keeps those cases explicit instead of presenting an infinite or invented percentage.