Profit Margin Calculator
Calculate gross profit, profit margin, and markup from cost and selling price.
How this calculator works
How to use this calculator
Enter your product or service cost and selling price. The calculator shows gross profit, profit margin, and markup.
Formula used
Gross Profit = Selling Price − Cost. Profit Margin = Gross Profit ÷ Selling Price × 100. Markup = Gross Profit ÷ Cost × 100.
Example calculation
If cost is $60 and selling price is $100, gross profit is $40, profit margin is 40%, and markup is 66.67%.
What the result means
Profit margin shows how much of the selling price remains as gross profit. Markup shows how much the price is increased above cost.
Frequently asked questions
Is margin the same as markup?
No. Margin is based on selling price, while markup is based on cost.
Can profit margin be negative?
Yes. If cost is higher than selling price, the margin will be negative.
Does this include taxes or overhead?
No. Enter the cost you want to analyze. You can include overhead manually if needed.