Profit Margin Calculator

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

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

What this tool does

Enter what an item costs you and what you sell it for; the calculator returns gross profit, profit margin (profit as a share of price) and markup (profit as a share of cost).

How to use the Profit Margin Calculator

  1. Enter your cost.
  2. Enter your selling price.
  3. Read margin, profit and markup.

Formula

Margin = (P − C) ÷ P × 100;  Markup = (P − C) ÷ C × 100
P
Selling price
C
Cost

Worked example

An item costing $40 sold for $100.

Inputs

  • Cost$40
  • Selling price$100

Result

  • Profit margin60%
  • Gross profit$60.00
  • Markup150%

Margin vs markup equivalents

MarkupMargin
25%20.0%
50%33.3%
75%42.9%
100%50.0%
150%60.0%
200%66.7%
300%75.0%

Results explained

Profit margin
Share of the selling price that is profit.
Gross profit
Price minus cost.
Markup
Profit relative to cost.

Frequently asked questions

Subtract cost from price, divide by price, and multiply by 100.

Margin divides profit by price; markup divides profit by cost. A 100% markup is a 50% margin.

No. Margin is capped below 100% because profit can never exceed the price. Markup can exceed 100%.

It varies by industry: grocery retail runs 1–3% net, while software and handmade goods can exceed 50% gross.

Gross, unless you include all fees and overhead in the cost field.