Quantity does not change the per-sale margin in this calculator. It lets you estimate the total profit that the same unit economics would generate at a chosen sales volume.
Markup uses a different base: cost. That is why a 50% markup does not produce a 50% margin. Use the calculator to see both numbers side by side instead of mixing the two formulas.
Profit is the money left after cost is subtracted from revenue. Profit margin expresses that profit as a percentage of revenue, which makes it useful for comparing products and sales situations.
How to Calculate Profit Margin
Margin vs. markup at a glance
- Margin = profit ÷ revenue
- Markup = profit ÷ cost
- Total profit = profit per calculation × quantity
- A zero-revenue case cannot produce a meaningful percentage margin
How this calculator works
Example
With $5,000 revenue and $3,250 cost, profit is $1,750, profit margin is 35%, and markup is about 53.8%.
Important assumptions
Results are planning estimates. Replace the default assumptions with your actual costs, rates, shipping arrangements, discounts, and sales volume. Marketplace and payment fees can change over time.