Profit Margin Calculator | Gross Profit and Markup

Calculate gross profit, profit margin percentage, and markup percentage from revenue and cost.

Cost

Revenue or Selling Price

Gross Profit

$50.00

Gross Margin

33.33

Markup

50.00

Calculate Gross Profit Margin

Enter revenue and cost to calculate gross profit, gross margin percentage, and markup percentage for a product, service, or sale.

Margin and Markup Answer Different Questions

Margin shows profit as a share of selling price. Markup shows profit as a share of cost. Use the right percentage for pricing, reports, and negotiations.

About This Tool

Profit Margin Calculator computes gross margin, net margin, and markup from revenue and cost figures. It helps businesses price products correctly and evaluate whether a deal or product line is profitable enough.

Good Times to Use It

Use this when setting a selling price from a cost price and a required margin, when evaluating the profitability of a contract or project, or when comparing margins across different products or services.

Using the Tool

Enter the revenue or selling price.
Enter the cost.
Click Calculate to see gross margin, net margin, and markup percentage.
Switch modes to calculate the price needed for a target margin.

FAQ

What is a healthy profit margin?

It depends on the industry. Grocery retail may operate on 1 to 3 percent net margin while professional services may achieve 15 to 30 percent. Know your industry benchmark.

What is the difference between margin and markup?

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A 50 percent markup equals a 33 percent margin.

How do I set a price to achieve a 40 percent margin?

Divide the cost by 0.60. For a product costing 60, the price for a 40 percent margin is 100.