Profit Margin Calculator

Work out gross profit, profit margin and markup from a unit cost and selling price. See margin and markup side by side. Calculates in your browser.

Gross margin

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Gross profit-
Markup-

Show the math

Profit is price minus cost; margin is profit over price, markup is profit over cost:

margin % = (price − cost) ÷ price × 100

markup % = (price − cost) ÷ cost × 100

Margin and markup are different views of the same profit, margin can never exceed 100%, markup can. All math runs in your browser.

What this does

A profit margin calculator works out gross profit, profit margin, and markup from a unit cost and selling price, showing margin and markup side by side.

How to use it

  1. Enter the unit cost.
  2. Enter the selling price.
  3. Read the gross profit.
  4. Compare margin and markup.

How it works

Margin is profit as a share of price and can never exceed 100%; markup is profit as a share of cost and can.

margin = (price − cost) ÷ price; markup = (price − cost) ÷ cost

Understanding your result

Margin and markup describe the same profit from two angles: margin is the share of each sale you keep after cost, while markup is how far you lifted price above cost. Use margin to compare profitability across products, and check that a healthy markup still leaves the margin you actually need.

Example

A $40 item costing $30 has a 25% margin and a 33% markup.

Sources & methodology

Last updated .

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of the cost. Markup can exceed 100%, margin cannot.

How do I calculate profit margin?

Subtract cost from price to get profit, then divide by the price and multiply by 100.

Is my data stored?

No. Everything is calculated locally in your browser.