Profit Margin Calculator
Calculate profit, profit margin and markup from cost and selling price.
Enter your values to see the result.
Profit here is gross profit: selling price minus cost of goods. It does not include overheads such as rent, salaries or taxes.
Continue your work
- Sales Tax Calculator — Add or remove tax from a price.
- ROI Calculator — Calculate the return on an investment.
Rate this tool
0.0
0 ratings
- 5 stars 0
- 4 stars 0
- 3 stars 0
- 2 stars 0
- 1 star 0
Share this tool
Found it useful? Send it to a friend or teammate.
Report an issue
Something broken or not quite right? Tell us and we will look into it.
Clear instructions
Find steps, examples and limitations below.
Use online
Open the tool in a supported web browser.
Free to use
No sign-up required. Tool-specific limits may apply.
How to use the Profit Margin Calculator
The profit margin calculator shows how much you make on a sale. Enter what an item costs you and the price you sell it for, and it calculates the profit, the profit margin (profit as a share of the price) and the markup (profit as a share of the cost). Add a quantity to see the total revenue, cost and profit of an order.
- 1 Enter the cost per item and the selling price per item.
- 2 Enter how many items you sell.
- 3 Read the profit, margin and markup, and compare them with your targets.
Example and practical tips
Buying a product for $60 and selling it for $100 earns $40 profit. That is a 40% margin and a 66.7% markup.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by the cost. The same sale has a higher markup than margin: a 50% markup equals a 33.3% margin.
What is a good profit margin?
It varies by industry. Grocery retailers often work on low single-digit net margins, while software and services can have much higher margins.
Is this gross or net profit?
Gross profit: price minus the cost of the goods. Net profit also subtracts overheads like rent, salaries, marketing and taxes.