BUSINESS
Profit Margin Calculator
Calculate gross profit, profit margin percentage and markup from cost and selling price.
Enter values and press Calculate.
How this calculator works
Gross profit equals selling price minus cost. Profit margin divides profit by selling price. Markup divides profit by cost.
How to use the result
Change one input at a time to compare scenarios. This helps you see which factor has the biggest effect on your total cost or savings.
Results are estimates for planning and comparison. Actual costs can differ because of taxes, tariffs, fees, usage patterns, equipment efficiency and local conditions.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of selling price, while markup is profit as a percentage of cost.
Does this include tax or overhead?
Only if you include those amounts in the cost input.
Can margin be negative?
Yes. If selling price is below cost, the calculator will show a negative profit and margin.