Margin calculator 2026
Margin is profit as a share of the selling price: selling price less cost, divided by the selling price. It tells you how much of every euro taken stays as profit — not how much was added to the goods.
- Profit
- €40.00
- Equivalent markup
- 40%
Rates and thresholds
- Margin
- (price − cost) ÷ price × 100
- Cost €100, sells at €140
- 28.6% margin
How do I calculate profit margin?
Subtract cost from the selling price, divide by the selling price, and multiply by a hundred. An item sold at €140 that cost €100 gives (140 − 100) ÷ 140 × 100 = 28.6% margin. The divisor is the selling price — divide by cost instead and you have computed markup.
Can a margin exceed 100%?
No, because profit cannot exceed the selling price — a 100% margin would mean the goods cost nothing. Markup has no such ceiling: something bought for €10 and sold for €50 carries a 400% markup, but the margin is 80%.