Profit Margin Calculator
Calculate gross profit, profit margin percentage, and corresponding markup from cost and selling revenue.
How to Use the Profit Margin Calculator
Enter the required values in the fields above and click Calculate. All calculations are executed directly inside your web browser using proven mathematical formulas, ensuring instantaneous results and 100% privacy without transmitting your numbers to remote servers.
Mathematical Formula
Worked Example
A product costing $60 and sold for $100 yields a $40 gross profit, representing a 40% profit margin and a 66.67% markup.
Important Notes & Limitations
Measures gross profit margin. Operating costs such as overhead, shipping, and marketing should be deducted separately for net margin.
Want an in-depth walkthrough? Read our full guide on How to Calculate Profit Margin: Formulas & Business Guide → with complete step-by-step examples and formula breakdowns.
This calculator provides estimates based on standard mathematical algorithms (such as compound interest formulas and standard amortization schedules) for budgeting, educational, and analytical scenarios. Actual loan terms, investment yields, taxes, and interest rates vary by financial institution, jurisdiction, and credit profile. This does not constitute certified investment, tax, legal, or financial advice. Consult a licensed financial advisor, CFP®, or CPA before making financial commitments.
Frequently Asked Questions
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the original cost.