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Profit Margin Calculator

Calculate your profit margin, markup, and ideal selling price

What do you want to calculate?

Cost — what you pay

Selling Price — what customer pays

Profit Margin
25%
of selling price

Markup

33.3%

of cost

Gross Profit

$25

per unit

Revenue Breakdown

Cost $75

Profit $25

Cost (75%)

Profit (25%)

Calculation Details

Selling Price $100.00

Cost −$75.00

Gross Profit $25.00

Profit Margin 25.00%

Markup 33.33%

Formulas Used

Profit Margin = (Price − Cost) ÷ Price × 100

Markup = (Price − Cost) ÷ Cost × 100

Gross Profit = Price − Cost

Margin vs Markup: What’s the Difference?

Profit margin is your profit as a percentage of the selling price — it tells you how much of each dollar of revenue is profit. Markup is your profit as a percentage of cost — it tells you how much you’ve added on top of your cost. Both measure profitability, but from different perspectives.

For example, if you buy a product for $75 and sell it for $100: your margin is 25% (you keep $25 of every $100 sale), but your markup is 33.3% (you added $25 to a $75 cost).

Disclaimer: This calculator provides gross profit margin based on direct cost and selling price. It does not account for operating expenses, overhead, taxes, or other costs that affect net profit. Use this as a starting point for pricing decisions.

Learn More About Profit Margins

How to Compute Profit Margin and Maximize Your Returns

Profit Margin Calculator

Margin vs Markup: What’s the Difference?

Learn More About Profit Margins

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