Profit Summary
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Free Online Calculators, Converters & Utility Tools
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Free Online Calculators, Converters & Utility Tools
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Your profit summary will appear here.
Profit margin and markup are useful ways to compare cost, selling price and profit. Although both are based on the same profit amount, they measure that profit against different values. Profit margin compares profit with the selling price, while markup compares profit with the cost price.
Profit is the difference between the selling price and the cost price.
For example, if an item costs $80 and sells for $100, the profit is $20. If the selling price is lower than the cost price, the result is a loss.
Profit margin measures profit as a percentage of the selling price.
Using a cost price of $80 and a selling price of $100, the profit is $20. Dividing $20 by the $100 selling price gives a profit margin of 20%.
Markup measures profit as a percentage of the cost price rather than the selling price.
With the same $80 cost and $100 selling price, the $20 profit represents a 25% markup because $20 is 25% of the $80 cost price.
Profit margin and markup are not the same percentage. Margin uses the selling price as its base, while markup uses the cost price. This is why an item with a 20% profit margin can have a 25% markup.
Understanding this difference can help when reviewing prices, profitability and pricing decisions. Always check whether a percentage refers to margin or markup before comparing results.
When the selling price is lower than the cost price, the difference is a loss rather than a profit. In that situation, this calculator can display negative profit margin and markup percentages to show the size of the loss relative to selling price and cost.
Enter the cost price and selling price, then select Calculate. ToolXone will display the entered cost and selling price together with the resulting profit or loss, profit margin percentage and markup percentage.
You can test different selling prices to compare how changes in price affect profit, margin and markup while keeping the cost price the same.
If you need to calculate a percentage increase, decrease or percentage relationship, try ToolXone's Percentage Calculator.
To compare investment gains or losses with the amount invested, use the ROI Calculator.
For price reductions and sale pricing, explore the Discount Calculator.
If taxes need to be considered separately in a transaction, use the GST / VAT Calculator.
The calculated results describe the relationship between the cost price and selling price you enter. They do not automatically include other business expenses such as shipping, advertising, payment processing, marketplace fees, taxes, salaries or overhead unless those costs are already included in the cost value you enter.
For business decisions, consider all relevant costs rather than relying on the purchase or production cost alone. The calculator provides a mathematical estimate based on the values entered and should be used as one part of a broader pricing or profitability analysis.