Profit Margin Calculator
Free profit margin calculator — enter cost and revenue to see gross profit, profit margin %, markup %, and break-even price. Multi-currency, no signup.
About Profit Margin Calculator
Calculate gross profit, profit margin, and markup in seconds. Pick a mode and the answers update as you type — From revenue if you know the selling price, From target margin if you want to work backwards to the price you need to charge.
The three numbers
- Gross profit —
revenue − cost. The cash you keep after covering the cost of the unit. - Profit margin —
profit ÷ revenue. The share of the selling price that is profit. - Markup —
profit ÷ cost. The mark-up applied over cost to get to the selling price.
Margin and markup describe the same dollar profit from different angles. They are not interchangeable — a 50% margin is a 100% markup. Always confirm which one a conversation partner means.
Worked example
A product costs $40 to make. You sell it for $100.
- Gross profit:
$100 − $40= $60 - Profit margin:
$60 ÷ $100= 60% - Markup:
$60 ÷ $40= 150%
To work backwards: if you want a 60% margin on a $40 cost, charge $40 ÷ (1 − 0.60) = $100. That is exactly what From target margin mode does — the calculator shows you the suggested price.
Free, no signup, runs entirely in your browser.
Frequently asked questions
Both describe profit relative to cost or revenue, but they're calculated differently. **Margin** = profit ÷ revenue. **Markup** = profit ÷ cost. A product that costs $40 and sells for $100 has a profit of $60 — that's a 60% margin (60/100) but a 150% markup (60/40). Margin is the share of the selling price that's profit; markup is the increase from cost to selling price.
Industry conventions vary. Retail and SaaS usually quote margin (it's the more conservative number). Wholesale, manufacturing, and bookkeeping often quote markup. Always confirm which one your conversation partner means — a '50% markup' is very different from a '50% margin'.
Profit margin (%) = (revenue − cost) ÷ revenue × 100. So a product with $40 cost and $100 revenue: ($100 − $40) ÷ $100 = 0.60 → 60% margin.
Markup (%) = (revenue − cost) ÷ cost × 100. Same example: ($100 − $40) ÷ $40 = 1.50 → 150% markup.