Profit Margin Calculator

Calculate profit, profit margin and markup from cost and selling price.

Currency

Cost per item

Selling price per item

Quantity sold

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.

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How this calculation works

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Formula: Profit = revenue − cost. Profit margin % = profit / revenue × 100. Markup % = profit / cost × 100.
Variables: Cost per item
Selling price per item
Quantity sold
Units: Use the same selected currency for all monetary inputs. Changing the symbol does not convert exchange rates.
Example: Buying a product for $60 and selling it for $100 earns $40 profit. That is a 40% margin and a 66.7% markup.
Assumptions: Profit here is gross profit: selling price minus cost of goods. It does not include overheads such as rent, salaries or taxes.
Source: ToolzHive calculation guide and calculator implementation. External reference verification is pending.
Last reviewed: Review date not yet recorded.

Methodology & References

The method depends on the selected model and input options. Review the assumptions and references above before interpreting the result.

Enter the cost per item and the selling price per item.
Enter how many items you sell.
Read the profit, margin and markup, and compare them with your targets.

Interpretation and limitations

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.

References

External reference verification is pending. The formula and examples describe the current ToolzHive implementation.

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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.

How to Use Profit Margin Calculator
Calculate gross profit, profit margin and markup from cost and selling price, for one item or a whole order. Free profit margin calculator for sellers.