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Profit Margin Calculator

Calculate gross profit margin, markup percentage, and profit from cost and revenue.

Gross Margin

37.5%

Markup

60%

Profit

30

Related Guide

Margin vs. Markup: Why They're Never the Same Number

Read Guide →

About This Tool

Free profit margin calculator — enter your cost and selling price to instantly calculate gross profit margin percentage, markup percentage, and profit amount. Margin and markup are two of the most commonly confused numbers in pricing: margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost — the same $10 profit on a $50 cost gives a 20% margin but a 25% markup, since they use different denominators. This tool calculates both at once so you always know which number you're looking at, plus it can work backward from a target margin to find the price you need to charge. Runs entirely in your browser — nothing is uploaded or saved.

How to Use

  1. 1

    Enter your cost

    Type the cost to produce or acquire one unit.

  2. 2

    Enter your selling price

    Type the price you sell it for.

  3. 3

    See margin, markup, and profit

    View gross profit margin %, markup %, and the profit amount instantly.

Frequently Asked Questions

What is the difference between margin and markup?+
Margin = Profit / Selling Price × 100 (profit as a percentage of what you charge). Markup = Profit / Cost × 100 (profit as a percentage of what you paid). They are always different numbers for the same sale.
What is a good profit margin?+
It varies enormously by industry — grocery retail often runs 1-3% margins while software and services can run 60-90%+, so "good" only makes sense compared to your specific industry.
How do I price a product for a target margin?+
Price = Cost / (1 − Target Margin). For example, a $20 cost with a target 40% margin needs a price of $20 / 0.6 = $33.33.

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