About the Profit Margin Calculator
Profit margin is profit as a percentage of revenue — the share of every sale you keep after costs. This calculator turns a price and cost into gross profit, margin, and the equivalent markup so you can price with confidence.
How it’s calculated
Gross profit = revenue − cost. Margin = gross profit ÷ revenue × 100. Markup = gross profit ÷ cost × 100.
Example calculation
Selling a $100 item that costs $60 gives $40 gross profit, a 40% margin, and a 66.7% markup.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The same dollar profit always shows a larger markup than margin.
What is a good profit margin?
It varies widely by industry — grocery is thin (a few percent) while software can exceed 80%. Compare against typical figures for your sector rather than a universal target.
This tool provides estimates for general informational and educational purposes only. Results are based on the values you enter and standard formulas, and may not reflect your specific circumstances.