Profit margin calculator
Enter the cost and the selling price to see the profit, the margin on sales and the markup on cost.
Free · no sign-up The values you type stay in your browser: nothing is sent or stored.
Profit
R$40.00
- Profit margin
- 40.0%
- Markup
- 66.7%
Your result in words
Selling for R$100.00 an item that costs R$60.00, the profit is R$40.00: a margin of 40% on sales and a markup of 66.67% on cost.
Informational estimate, without fees or inflation. Check taxes and charges for your case; the real result may differ.
How it works
Margin and markup
Profit margin shows how much of the selling price is left as profit. Markup shows how much you add on top of the cost. They are different: cost 60 and price 100 give a 40% margin and a 66.67% markup.
Cautions
The calculation uses the cost you enter. Include taxes, commissions, shipping and packaging in the cost, or the real margin will be lower.
Formula
How to calculate
L is the profit (price minus cost), P the selling price, C the cost, m the margin on sales and k the markup on cost.
Example
With round numbers, so you can check the math:
Selling for R$100.00 an item that costs R$60.00, the profit is R$40.00: a margin of 40% on sales and a markup of 66.67% on cost.
Frequently asked questions
What is the difference between margin and markup?
Margin is computed on the selling price; markup on the cost. That is why markup is always higher than margin.
What is a good margin?
It depends on the industry. Compare with your market average and your fixed costs.
Can the margin be negative?
Yes, when you sell below cost: the result shows the loss.
Math checked by the JuntaTudo team · updated on Nov 12, 2026
