Profit Margin Calculator

Enter what an item costs you and what you sell it for to get profit, gross margin and markup.

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01How to use the Profit Margin Calculator

  1. 01Enter the cost of the item or service.
  2. 02Enter the revenue or selling price.
  3. 03Read the margin, markup and profit. A negative profit is shown as a loss.

02Margin and markup formulas

Profit  = Revenue − Cost
Margin  = Profit ÷ Revenue × 100
Markup  = Profit ÷ Cost × 100

Price for a target margin = Cost ÷ (1 − Margin ÷ 100)

03Examples

Cost $60, price $100: $40 profit, 40% margin, 66.67% markup.

To make a 25% margin on a $30 item, price it at $40.

Cost $80, price $72: an $8 loss and a −11.11% margin.

04Frequently asked questions

What is the difference between margin and markup?

Both divide the same profit, but margin divides by the selling price and markup by the cost. A 50% markup is only a 33.3% margin.

Can margin be more than 100%?

No. Margin can approach 100% when cost is near zero, but it can’t exceed it. Markup has no upper limit.

Is this net profit margin?

No. This is gross margin on the cost you enter. Net margin also subtracts operating expenses, interest and taxes.