Profit Margin Calculator
Calculate profit, profit margin and markup from cost and selling price.
Margin is profit as a percentage of the selling price; markupis profit as a percentage of the cost. They differ — a 50% markup is only a 33.3% margin — so be clear which one a supplier or client means. Calculated in your browser.
Results are estimates for information only, not financial advice. See how we build and verify our calculators.
Enter a product's cost and selling price to instantly see the profit, the profit margin (profit as a share of the selling price) and the markup (profit as a share of the cost). Margin and markup are easy to confuse — a 50% markup is only a 33.3% margin — so the tool shows both. Ideal for retail, e-commerce and freelance pricing. Runs in your browser.
How to use the Profit Margin Calculator
- Enter the cost price.
- Enter the selling price (revenue).
- Read the profit, profit margin and markup.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit ÷ selling price; markup is profit ÷ cost. For the same prices, markup is always the larger percentage. Be sure which one a client or supplier means.
What is a good profit margin?
It varies hugely by industry — grocery retail runs on single-digit margins while software can exceed 80%. Compare against typical figures for your sector.
How do I calculate gross margin?
Gross margin = (selling price − cost of goods) ÷ selling price × 100. That's exactly the 'profit margin' this tool reports.