Profit Margin Calculator (Markup or Margin?)

Profit margin = (sale price − cost) / sale price × 100. In other words, you take profit as a share of the sale price. For example, with a 100 TL cost and a 150 TL sale the profit is 50 TL and the margin is 50 / 150 = %33,33. Because you divide the margin by the sale price, the result is always below %100.

Both express the same profit against a different base. Profit margin divides profit by the sale (profit / sale), while markup divides profit by the cost (profit / cost). With a 100 TL cost and a 150 TL sale the profit is 50 TL; the margin is %33,33 while the markup is %50. They describe the same transaction with two different percentages, and confusing them throws your pricing seriously off.

It depends on which base you mean. Percentage profit relative to the sale is the margin (profit / sale), while percentage profit relative to the cost is the markup (profit / cost). Price tags and competitor comparisons are usually discussed in terms of margin, whereas the mark-up rate that reflects the buy-sell gap is discussed in terms of markup.

No. Adding %50 to the cost (a %50 markup) does not make the margin %50. Adding %50 to a 100 TL cost gives a 150 TL sale, and the margin is 50 / 150 = %33,33. To get a %50 margin, the sale would have to be 200 TL (a %100 markup).

Sale price = cost / (1 − target margin). For example, if you target a %40 margin on a 100 TL cost, the sale = 100 / (1 − 0,40) = 100 / 0,60 = 166,67 TL. Dividing the cost by (1 − margin) is different from adding the percentage straight onto the margin, and it is the correct method.

It varies by industry and business model; there is no single right number. Single-digit margins can be sustainable on fast-moving, low-priced products, while %30-50 is expected on low-volume or branded products. What matters is that, in marketplace sales, the net margin left after commission, shipping, advertising and returns stays positive.

No. Gross margin subtracts only the product cost (sale − product cost). Net margin takes the profit left after deducting every expense — commission, shipping, service fee, advertising, withholding tax and returns — as a share of the sale. On a marketplace, net margin is the one you should really watch.

This tool shows the basic margin-to-markup relationship between cost and sale price. For your real net margin on a marketplace like Trendyol — including commission, shipping and VAT — use the Trendyol profit calculator; that tool deducts every cost per sale to give you the net profit.