How to use this tool
A decision, not just an output
Compare profit margin and cost markup so you can price a product without confusing the two percentages. Read the output alongside its interpretation, assumptions, limitations, and source. Marketplace rates and external requirements should always be confirmed at the linked official source.
Formula & example
Transparent method
Profit = price − cost; margin = profit ÷ price; markup = profit ÷ cost.
Example: A $100 selling price and $60 total cost produces $40 profit, 40% margin, and 66.67% markup.
Frequently asked questions
Is the Profit Margin & Markup Calculator free?
Yes. The primary result is available without creating an account or entering an email address.
How is the result calculated?
Profit = price − cost; margin = profit ÷ price; markup = profit ÷ cost.
What should I verify before using it?
Taxes and cash-flow timing are not modeled. The result is planning information, not accounting advice.
Are my inputs private?
Core inputs are processed in your browser. ShipMargin records anonymous tool interaction events, not the business values entered into this form.