About this Profit Margin Calculator
Profit Margin Calculator compares an item or service cost with its selling price. It reports gross profit, margin percentage and markup percentage so you can distinguish these commonly confused measures.
Formula or method
Profit = selling price − cost. Margin % = profit ÷ selling price × 100. Markup % = profit ÷ cost × 100.
Example
If an item costs 60 and sells for 100, gross profit is 40, margin is 40%, and markup is about 66.67%.
Common uses
- Compare selling prices against direct cost.
- Understand the difference between margin and markup.
- Run quick pricing scenarios before including additional expenses.
How to use this tool
- Enter the values or text requested by the calculator.
- Choose units or options when the tool provides them.
- Select the calculation button and review the result.
- Use the formula, example and notes on this page to check whether the result fits your situation.
Important note
This is a simple gross calculation and does not include taxes, transaction fees, shipping, salaries, overhead or other business expenses unless you include them in the cost value yourself.
Estimate only: Money-related results are mathematical estimates. They are not financial, tax, legal, credit or lending advice.
Frequently asked questions
Is margin the same as markup?
No. Margin divides profit by selling price, while markup divides profit by cost.
Does this calculate net profit?
No. It is a simple gross calculation based only on the cost and selling price you enter.