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Profit Margin Calculator

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

What is profit margin? It measures how much profit you keep from every dollar of revenue, after costs. It's one of the clearest signals of pricing and business health.

Basic Profit Margin

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Markup vs Margin

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Target Profit

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Business Analysis

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Your Results

Profit Margin Performance
Low (0%)Fair (25%)Good (50%)Excellent (75%+)

Detailed Breakdown

What this tool does

Work out profit margin, markup, or the price you need to hit a target margin. It has four modes: Basic Margin, Markup vs Margin, Target Profit and Business Analysis.

How to use it

Pick your currency, choose a mode and fill in the numbers. For a basic margin you enter revenue and cost of goods sold, and add operating expenses if you want a net view. Press Calculate.

Quick example

Say you sell a product line for 10,000 and it costs 6,000 to produce. Gross profit is 4,000, so gross margin is 40%. Markup on cost is 4,000 divided by 6,000, which is about 66.7%. The two numbers are often mixed up, and the Markup vs Margin mode shows both side by side.

FAQs

What is the difference between margin and markup? Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 50% markup is only a 33% margin.

Does it store my numbers? No. Everything is calculated in your browser.

Does it include tax? No. Enter figures with or without tax, but keep them consistent.

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