NodusTechProfit Margin Calculator
Enter your selling price and cost to see gross profit, profit margin and markup — instantly.
How to read your result
Gross profit is the cash difference between what you charge and what it costs you. Margin expresses that profit as a share of your selling price; markup expresses it as a share of your cost — both describe the same sale, from two different reference points.
Worked example
A product sells for €80 and costs €50 to make. Gross profit = €80 − €50 = €30. Margin = €30 ÷ €80 = 37.5%. Markup = €30 ÷ €50 = 60%. Same sale, same €30 profit — a materially different-looking percentage depending on which one you quote.
Formula
Gross profit = Selling price − Cost
Margin % = Gross profit ÷ Selling price × 100
Markup % = Gross profit ÷ Cost × 100
Good to know
Confusing margin with markup is one of the most common small-business pricing mistakes — pricing to a 50% markup actually produces a 33.3% margin, not 50%. When you set a target percentage for pricing, be explicit with yourself about which one you mean.
Frequently Asked Questions
What's the difference between margin and markup?+
Margin is profit as a share of your selling price (profit ÷ price). Markup is profit as a share of your cost (profit ÷ cost). The same profit gives a lower margin % than markup % — they're never the same number.
Which one should I use to set my price?+
If you have a target margin in mind (e.g. "I want 40% of every sale to be profit"), use margin. If you think in terms of "I want to add X% on top of cost", that's markup — this calculator shows both so you always know which you're looking at.
Why is my markup % always higher than my margin %?+
Markup divides profit by the smaller number (cost), while margin divides profit by the larger number (selling price) — so for the same sale, markup % is always higher than margin %.
Is my data saved or sent anywhere?+
No. The calculation runs entirely in your browser and nothing you enter is stored or transmitted.
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This calculator is provided for general information only and is not accounting, tax or financial advice.