Business calculator

Profit Margin Calculator

Calculate gross profit, profit margin, and markup from cost and selling price.

FormulaMargin = (price - cost) / price x 100; Markup = (price - cost) / cost x 100

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%.

FAQ6 common questions for this calculator.

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?+

For the Profit Margin Calculator, 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?+

For the Profit Margin Calculator, enter cost and selling price. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.

How accurate is the Profit Margin Calculator?+

Profit Margin Calculator is accurate when the business inputs come from the same reporting period and definition. It applies the Margin and markup formulas. Platform attribution windows, refunds, taxes, or overhead allocation can change the interpretation.

What should I check before using the Profit Margin Calculator result?+

For the Profit Margin Calculator, check cost and selling price, measurement period, attribution window, revenue basis, costs, and rounding rules. Business metrics change meaning when inputs come from different systems or time ranges.

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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. 1

    Enter your details

    Enter cost and selling price, then complete any other fields shown in the calculator.

  2. 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. 3

    Compare scenarios

    Change one or more inputs to see how they affect the profit Margin Calculator result before you use the estimate.