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Profit Margin Calculator

Calculate the gross profit margin and markup of a product or service from its selling price and cost. These two figures are often confused, but they're calculated on different bases, and this tool helps you tell them apart clearly.

How it works

  1. Enter the selling price (revenue) of your product or service.
  2. Enter the cost associated with that product or service.
  3. The calculator automatically shows the gross profit in dollars.
  4. You'll also see the profit margin (% of selling price) and the markup (% of cost).

Use cases

  • Setting selling prices that hit a target profit margin.
  • Comparing the real profitability of different products in a catalog.
  • Checking whether the markup applied to cost produces the expected margin.
  • Explaining the difference between margin and markup to a sales team when setting prices.

Frequently asked questions