Profit Margin Calculator
Compute profit, margin, markup, and selling price using various known financial metrics.
Selling an item for $100.00 with a cost of $60.00 yields a gross profit of $40.00 (40.00% margin, 66.67% markup).
Formula: Revenue - Cost
Substitution: 100.00 - 60.00 = $40.00
Formula: (Profit / Revenue) × 100
Substitution: (40.00 / 100.00) × 100 = 40.00%
Formula: (Profit / Cost) × 100
Substitution: (40.00 / 60.00) × 100 = 66.67%
Profit Margin vs. Markup
Profit is revenue minus cost. Margin expresses that profit as a percentage of the selling price (profit ÷ revenue), while markup expresses it as a percentage of the cost (profit ÷ cost).
They are easy to confuse: a $60 cost sold for $100 is a 40% margin but a 66.67% markup. Knowing both helps you price products correctly to protect your business viability and cover overheads.
Private & free — this tool runs entirely in your browser.