Add the numbers for your scenario.
01Profit Margin
Margin, markup and selling price from cost.
- 1Enter detailsAdd the numbers for your scenario.
- 2CalculateVootkit updates the result instantly.
- 3ReviewCheck totals, notes and breakdowns.
How to use Profit Margin
Vootkit updates the result instantly.
02Check totals, notes and breakdowns.
03Copy the answer into your workflow.
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Learn more about privacyMargin and markup are different numbers that people use interchangeably, and the confusion reliably costs money. A 50% markup is a 33% margin — not the same thing at all.
What Profit Margin does
Calculates gross profit, margin and markup from a cost and a selling price, across any number of units.
Showing both margin and markup side by side is deliberate. Suppliers usually quote markup and accountants think in margin, so the same deal gets described two ways and the gap is where pricing mistakes happen.
Margin versus markup
| Margin | Profit ÷ selling price — the share of revenue you keep |
|---|---|
| Markup | Profit ÷ cost — how much you added to what you paid |
| 50% markup | equals a 33% margin |
| 100% markup | equals a 50% margin |
| Margin ceiling | Can never reach 100% |
| Markup ceiling | None — it can exceed 100% freely |
| This is gross | Before overheads, payment fees, returns and tax |
Detailed steps
- Enter your unit cost and selling price.
- Set the number of units for totals.
- Read margin and markup separately, and note which one a supplier or platform means.
Worth knowing
This is gross margin — it counts the cost of the item and nothing else. Payment processing, platform fees, shipping, returns, storage and your own time all come out of what is left. A healthy-looking 40% gross margin can be a loss once a 3% payment fee, a 15% platform fee and a 10% return rate are taken off.
Frequently Asked Questions
What is the difference between margin and markup?
The denominator. Margin divides profit by the selling price; markup divides it by the cost. Buy at 100 and sell at 150 and you have a 50% markup and a 33% margin. Both describe the same deal.
Why can margin never reach 100%?
Because it is a share of the selling price, and the cost is always part of that price. Only a zero-cost product would give a 100% margin. Markup has no such ceiling — a 10 to 100 sale is a 900% markup.
Which should I use for pricing?
Margin, generally, because it tells you what share of each sale you keep and it compares cleanly across products. Use markup when translating a supplier’s quote, since that is usually the language they are speaking.
Does this include fees and overheads?
No — it is gross margin on the item only. Payment fees, platform commission, shipping, returns and overheads all reduce what you actually keep. Use the platform fee calculators to work those out separately.
Is Profit Margin free?
Yes. The Vootkit free plan includes 5 tool runs a day. Upgrade to Vootkit Pro for unlimited daily use, an ad-free workspace and saved workflows.
Are my files uploaded?
No. Profit Margin runs entirely in your browser — your file is processed on your own device and never sent to a server. There is nothing for us to store or delete.
Do I need to install anything?
No. Profit Margin works in any modern browser on desktop, tablet or phone. Open the page and start.
How often can I use it? Is there a daily limit?
On the free plan you get 5 tool runs a day. When you reach the limit you'll see a prompt to upgrade, and it resets the next day. Vootkit Pro removes the cap entirely for unlimited daily use.
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