Profit Margin vs. Markup
The two are often confused but differ. Profit margin is profit relative to the sale price; markup is profit relative to cost. Sell a ₺100-cost item for ₺150 and your profit is ₺50: markup is 50% (50/100) while margin is 33.3% (50/150). Knowing this distinction is critical in pricing; whether "50% profit" means markup or margin makes a real difference.
Two Modes
- Find profit and margin: enter unit cost and sale price to see profit, margin and markup. A loss is flagged separately.
- Find sale price: enter unit cost and your target margin to calculate the sale price needed to reach it.
For Sound Pricing
A healthy price is not just cost + profit; VAT, shipping, marketplace commission, return rate and overheads all belong in the price. This tool works on net profit excluding tax; to add VAT use our VAT Calculator, and for discount scenarios our Discount Calculator. Results are informational and do not replace advice from an accountant.