Profit Margin Calculator
Know your numbers. Price with confidence.
Calculate your gross profit margin, markup and profit per sale in seconds. Enter your selling price and cost to see exactly how the numbers work.
💵 Enter your numbers
💡 Use the same currency for selling price and cost. Include direct product or service costs when calculating gross profit margin.
⚙️ What are we calculating?
Gross profit is selling price minus direct cost. Gross margin expresses that profit as a percentage of the selling price. Markup expresses it as a percentage of cost.
This calculator estimates gross profit before overhead, income taxes, financing and other expenses not included in your unit cost. Changing currency changes the display only, not the entered amounts.
🧠 How to calculate profit margin
Gross profit margin measures the percentage of revenue remaining after direct costs. It’s a useful way to evaluate product pricing, compare profitability and understand how much revenue remains to cover operating expenses.
🧮 Example: Selling a product
Suppose a product costs $60 and sells for $100. The gross profit is $40 per unit.
That means 40% of the selling price is gross profit, while the markup on the original $60 cost is approximately 66.67%.
💡 Frequently Asked Questions
Margin compares profit with selling price, while markup compares profit with cost. For example, a $40 profit on a $100 sale with a $60 cost gives a 40% margin and a 66.67% markup.
It depends on the industry, product, operating costs and business model. A higher gross margin provides more room to cover overhead, but doesn’t guarantee a positive net profit.
No. This tool calculates gross profit using the costs you enter. Net profit also accounts for other operating expenses, financing costs and applicable taxes.
Yes. If your selling price is lower than your cost, you have a gross loss and a negative margin. The calculator will show that result.