Free tool
Profit margin calculator
Enter what you paid for an item and what you sell it for. The calculator shows your profit per item, your profit margin and your markup, and the total profit if you sell a number of them.
How profit margin is calculated
Profit is what is left after you take the cost price from the selling price. Margin shows that profit as a share of the selling price. Markup shows it as a share of the cost price.
Margin and markup are often confused. A 50% markup is only a 33% margin, so always check which one a supplier or price list means.
- Profit = Selling price − Cost price
- Margin % = Profit ÷ Selling price × 100
- Markup % = Profit ÷ Cost price × 100
Example: a carton of noodles
- You buy a carton for ₦8,000 and sell it for ₦9,600.
- Profit = ₦9,600 − ₦8,000 = ₦1,600 per carton.
- Margin = ₦1,600 ÷ ₦9,600 = 16.7%.
- Markup = ₦1,600 ÷ ₦8,000 = 20%.
Let SaleTick work out profit on every sale
SaleTick calculates profit and loss automatically from your cost and selling prices, so you can see the profit on today's sales without a calculator, or just ask on WhatsApp.
Profit Margin Calculator: common questions
- What is a good profit margin for a shop in Nigeria?
- It depends on what you sell. Fast-moving goods like provisions and drinks usually run on thin margins and make money on volume, while fashion, cosmetics and accessories often carry higher margins. Compare your margin with what your rent, salaries and other costs need.
- What is the difference between margin and markup?
- Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost price. The same item always has a higher markup than margin.
- Should transport and other costs be in the cost price?
- Yes, if they are part of getting the item to your shop. Including transport and packaging in the cost price gives a truer profit figure.
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- Stock-Taking TemplateA free count sheet that works out shortages and their value.Read more
SaleTick for your business
- SaleTick for pharmaciesExpiry alerts, stock that matches the shelf, and every sale recorded.Read more
- SaleTick for supermarkets and mini martsBarcode checkout, printed receipts and every branch in one place.Read more
- SaleTick for provision and grocery storesFast counter sales, customer debts and restock alerts.Read more
- SaleTick for fashion, clothing and shoe storesSizes, colours and variations tracked, with your own barcode labels.Read more
- SaleTick for cosmetics and beauty storesHundreds of small products, expiry alerts and best-seller reports.Read more
- SaleTick for electronics and gadget shopsHigh-value stock tracked, every sale tied to a staff member.Read more
Stop working it out by hand.
SaleTick records every sale, keeps stock accurate and works out your profit for you.
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