Profit Margin Calculator
Gross profit, margin % and markup % from your cost and selling price.
Cost & Price
Profit Margin
40.00%
Markup
66.67%
Total Revenue (Qty)
$100.00
Total Profit (Qty)
$40.00
Margin and markup are not the same number
Ask ten founders their margin and half will quote their markup. This profit margin calculator keeps them straight: enter what a unit costs you and what you sell it for, and you get gross profit per unit, the true gross margin percentage (profit divided by price), and the markup percentage (profit divided by cost).
Use the quantity field to scale a single unit into a batch, a product run or a month of sales, and see total revenue and total profit side by side. It is the fastest sanity check before you set a price, quote a client or discount a product.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Selling at $100 with a $60 cost gives a 40% margin but a 66.67% markup - same profit, different denominator.
How do I calculate profit margin?
Subtract cost from price to get profit, divide profit by the selling price, and multiply by 100. A $40 profit on a $100 price is a 40% gross margin.