Business calculator
Profit Margin Calculator
Calculate gross profit, profit margin, and markup from cost and selling price.
Formula
Margin and markup formulas
This calculator estimates gross margin before overhead, taxes, discounts, refunds, and processing fees.
Margin = (price - cost) / price x 100; Markup = (price - cost) / cost x 100
If cost is 60 and price is 100, profit is 40, margin is 40%, and markup is 66.67%.
FAQs
What is the difference between margin and markup?+
Margin compares profit to selling price. Markup compares profit to cost.
Does this include overhead?+
No. It calculates gross profit from cost and selling price only.
How does the Profit Margin Calculator calculate the result?+
It uses the Margin and markup formulas: Margin = (price - cost) / price x 100; Markup = (price - cost) / cost x 100. If cost is 60 and price is 100, profit is 40, margin is 40%, and markup is 66.67%.
What information do I need to use the Profit Margin Calculator?+
Calculate gross profit, profit margin, and markup from cost and selling price.
How accurate is the Profit Margin Calculator?+
Profit Margin Calculator applies the formula and assumptions shown on this page. Results may be rounded for readability, so verify changing rates, thresholds, medical guidance, or legal rules with the cited source or a qualified professional.
What should I check before using the Profit Margin Calculator result?+
Check that the units, dates, rates, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
Business guide
How to use the Profit Margin Calculator
Calculate gross profit, profit margin, and markup from cost and selling price. The page also explains the margin and markup formulas and shows a practical example: If cost is 60 and price is 100, profit is 40, margin is 40%, and markup is 66.67%.
- 1
Enter your details
Enter cost and selling price, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the margin and markup formulas: Margin = (price - cost) / price x 100; Markup = (price - cost) / cost x 100.
- 3
Compare scenarios
Change one or more inputs to see how they affect the profit Margin Calculator result before you use the estimate.
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