At $40.00 cost and $75.00 selling price, profit is $35.00 and margin is 46.67%.
Show calculation steps
- Profit = $75.00 − $40.00 = $35.00.
- Margin = profit ÷ selling price × 100 = 46.6667%.
- Markup = profit ÷ cost × 100 = 87.5%.
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Price a handmade product
Cost: $40 · Selling price: $75
- 01
Gross profit: 75 − 40 = $35.
- 02
Margin: 35 ÷ 75 × 100 ≈ 46.67%.
- 03
Markup: 35 ÷ 40 × 100 = 87.5%.
Illustrative example · Only the entered cost is included. Add overhead, payment fees and shipping separately when estimating net profitability.
Load this example ↗Formula & method
Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost. PercentScope always shows both so the two are not confused.
Frequently asked questions
What's the difference between margin and markup?
Margin divides profit by selling price. Markup divides profit by cost.
How do I price for a 30% margin?
Divide cost by 1 minus the margin rate. A $70 cost at 30% margin requires a $100 selling price.