Profit Margin Calculator

Calculate margin, markup, and the right selling price — with a visual breakdown.

What do you want to find?

Cost per Unit

Selling Price per Unit

Calculate using

Profit Margin

Markup

Revenue Breakdown

Cost {{ costStr }} Profit {{ profitStr }}

Calculation Details

Selling Price{{ priceStr }}

Cost−{{ costStr }}

Gross Profit{{ profitStr }}

Profit Margin{{ marginStr }}

Markup{{ markupStr }}

Formulas Used

Gross Profit = Selling Price − Cost
Profit Margin = (Gross Profit ÷ Selling Price) × 100
Markup = (Gross Profit ÷ Cost) × 100

Margin vs Markup: What’s the Difference?

Margin and markup both describe the profit on a sale, but they measure it against different bases. Profit margin is your gross profit as a percentage of the selling price — it tells you what portion of each sale you keep. Markup is your gross profit as a percentage of the cost — it tells you how much you add on top of what you paid.

For example, a product that costs $75 and sells for $100 has a 25% margin (you keep $25 of every $100 in sales) but a 33.3% markup (you added $25 on top of the $75 cost). Confusing the two is a common pricing mistake — a 50% markup is only a 33% margin.

Use margin to understand profitability and compare against industry benchmarks. Use markup as a quick pricing rule when setting prices from your costs. Knowing both helps you price confidently and protect your bottom line.

Disclaimer: This calculator provides estimates for planning purposes. It calculates gross margin on a per-unit basis and does not account for operating expenses, taxes, or volume discounts. For complete pricing and profitability analysis, contact EpicBooks.