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Shopping · Practical tool guide

Profit-margin guide: margin versus markup

Separate profit, margin on selling price and markup on cost.

When this tool helps

Margin and markup can describe the same transaction with different percentages. Profit is selling price minus cost; margin divides that profit by selling price, while markup divides it by cost. Confusing the denominators can lead to a price that does not achieve the percentage you intended.

Enter cost and selling price for the same quantity in the same currency. The tool shows profit along with both percentages so you can see the distinction. It does not automatically add marketplace fees, taxes, postage or overheads to your cost.

What to enter

These are the candidate Android fields, not a form on this website. Editable fields in the app start empty; modes and units are selected separately.

Cost
Your cost for the item or quantity being sold.
Selling price
The corresponding selling price, in the same currency.
Worked example · not prefilled app data

Try this example after the update is available

The values below explain the calculation. They are not a quote, a live measurement or an automatic answer for your situation.

Cost
80
Selling price
100

Checked example result20.00 profit

The difference is 20.00. That is a 20% margin on the 100.00 selling price, but a 25% markup on the 80.00 cost.

Formula and assumptions

Profit = sale − cost; margin = profit ÷ sale × 100; markup = profit ÷ cost × 100

  • Inputs cannot be negative, but a sale below cost produces a negative profit.
  • The profit is only as complete as the cost you enter. It is not an audited business profit or tax calculation.

A common mistake to avoid

A 25% markup does not mean a 25% margin. Always name the percentage and check whether it uses cost or selling price as the base.

Find this tool in the Android update

  1. When you have the redesigned Android update, open Tools and search for Profit margin, or find it under Shopping.
  2. Open the tool, choose the mode or units relevant to your task, then enter your own values.
  3. Review the result and explanation. Use Calculate & save only if you want the calculation kept in local History; Copy result does not send it to our server.

This guide is an educational preview of the update in testing, not an announcement that Google Play has approved or published it. Calculations are in the native app; no web calculator or download is offered on this page.

Questions about Profit margin

What happens if cost is zero?

Profit can still be calculated, but markup is labelled not defined because its denominator is zero.

Does it include selling fees?

No automatic fee rule is applied. Include relevant costs in your own input if that matches the comparison you want.

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