Profit Margin Calculator
Calculate gross profit, profit margin and markup percentage from cost and selling price.
About the Profit Margin Calculator
Pricing products correctly is the key to a profitable business. Enter what an item costs you and what you sell it for, and the profit margin calculator shows your profit, profit margin and markup, two numbers that are often confused.
How to Use the Profit Margin Calculator
- Enter your cost price.
- Enter your selling price.
- Press Calculate to see profit, margin and markup.
Formula and How It Works
Profit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100.
Frequently Asked Questions
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 equals a 33.3% margin.
What is a good profit margin?
It depends on the industry. Retail margins of 20–50% are common, while software businesses can have margins above 70%.
Results are estimates for planning purposes only and are not financial advice. Actual figures from your bank or lender may differ.