Profit Margin Calculator
Calculate gross profit, margin and markup from cost and selling price.
Processing: This tool runs entirely in your browser. Your input and any file you open stay on your device — nothing is uploaded to a server.
How to use the profit margin calculator
- Fill in the fields — they start with a worked example.
- Read the answer, and the arithmetic shown beneath it.
- Copy the results, or adjust the inputs to compare scenarios.
About this tool
Margin and markup describe the same profit against different bases, and confusing them is one of the most common pricing mistakes. Margin is profit as a share of the selling price; markup is profit as a share of the cost.
Buy at 60 and sell at 100: the margin is 40% and the markup is 66.7%. Someone told to apply a '40% markup' to a 60 cost will price at 84, not 100 — an 8% shortfall on every sale. Both figures are shown here so the difference is visible.
Common uses
- Setting a price from a target margin.
- Checking whether a supplier quote leaves enough room.
- Translating a markup instruction into an actual price.
Frequently asked questions
- What is the difference between margin and markup?
- Margin divides profit by the selling price; markup divides it by the cost. The same sale always shows a higher markup than margin.
- Can margin be more than 100%?
- No. Margin is a share of the price, so it approaches 100% but never exceeds it. Markup has no upper limit.
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