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Profit margin & markup
See profit, margin and markup side by side. Understand why they are different.
Try your numbers
The starting numbers are an example. Use one currency throughout. Currency selection changes the display, not the amounts.
Your result
Profit margin versus markup, explained simply
Profit is the selling price minus the cost you entered. Profit margin divides profit by the selling price. Markup divides profit by the cost. They use different starting points, so the percentages are different.
Example
Buy or produce an item for 80 and sell it for 100. Profit is 20, margin is 20%, and markup is 25%. Neither percentage tells the whole story unless your cost figure includes the relevant expenses.
If your selling price is below your cost, the result is a loss. When cost is zero, markup is undefined; we show “Not applicable” rather than divide by zero. This is a unit-level comparison before tax, not your whole business’s net profit margin.