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
- Enter your cost.
- Enter your selling price.
- 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
| Markup | Margin |
|---|---|
| 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.