Profit margin is your profit divided by the selling price. Markup is your profit divided by the cost. If something costs ₦8,000 and you sell it for ₦10,000, profit is ₦2,000, margin is 20% and markup is 25%. Enter your own cost and price below.
How the Profit Margin Calculator works
- Enter what the item costs you, including transport to your shop if you can.
- Enter your selling price.
- See profit per sale, margin and markup.
- Change the price to see how margin moves.
Worked example
A phone accessories seller buys power banks at ₦8,500 and sells at ₦12,000.
Profit: ₦3,500
Margin: ₦3,500 ÷ ₦12,000 = 29.17%
Markup: ₦3,500 ÷ ₦8,500 = 41.18%
Common mistakes to avoid
- Confusing margin with markup
- Leaving out transport and packaging from cost
- Pricing every item with the same markup regardless of how fast it sells
Need a different calculator?
Margin or markup: which to use
Use markup when setting prices from cost (“add 30%”), and margin when comparing products or checking how much of each sale is yours. Many traders mix them up and end up with less profit than they think: a 30% markup is only a 23% margin.
Include all your costs
Cost should include transport, loading, packaging and any damaged or unsold stock. A margin that looks healthy on the purchase price can shrink once these are counted.
Frequently asked questions
What is a good profit margin?
It depends on the trade. Fast-moving goods like provisions often run on 5–15%, while fashion and cosmetics can be 30% or more.
How do I get the price for a margin I want?
Divide cost by (1 − margin). For a 25% margin on ₦9,000, price = ₦9,000 ÷ 0.75 = ₦12,000.
Is markup the same as margin?
No. Markup is profit ÷ cost, margin is profit ÷ price.
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