📈 Business

Profit Margin Calculator

Calculate gross profit, profit margin and markup from revenue and cost.

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$

Results

Profit margin
35.00%
Gross profit
$35.00
Markup
53.85%

📊 Profit Margin Calculator chart

Price breakdown.

What is the Profit Margin Calculator?

Calculate gross profit, profit margin and markup from revenue and cost. Pricing and profitability come down to a few core ratios. These business calculators help owners, freelancers and managers price products, protect margins and understand when an investment pays back.

Profit Margin Calculator – free online business tool illustration
Profit Margin Calculator — free, exact and private.

How to use the Profit Margin Calculator

  1. Enter your revenue, your cost.
  2. Results update automatically as you type; you can also press Calculate.
  3. Read the output: profit margin, gross profit, markup.
  4. Use the 📊 chart to see the result visually, then copy or share it.

Formula and method

Margin = (Revenue − Cost) ÷ Revenue Markup = (Revenue − Cost) ÷ Cost

Worked example

With revenue = $100, cost = $65, the Profit Margin Calculator returns profit margin: 35.00%; gross profit: $35.00; markup: 53.85%.

Tips for better results

  • Margin and markup are different: a 50% markup is only a 33.3% margin.
  • Include every variable cost (fees, shipping, payment processing) when pricing.
  • Re-run break-even numbers whenever fixed costs such as rent or salaries change.

⚠️ Business results are estimates for planning. Consult an accountant for tax and reporting decisions.

Frequently asked questions

What does the Profit Margin Calculator do?

Calculate gross profit, profit margin and markup from revenue and cost.

How is it calculated?

The Profit Margin Calculator uses this method: Margin = (Revenue − Cost) ÷ Revenue; Markup = (Revenue − Cost) ÷ Cost.

Can you show an example?

With revenue = $100, cost = $65, the Profit Margin Calculator returns profit margin: 35.00%; gross profit: $35.00; markup: 53.85%.

Is the Profit Margin Calculator accurate?

It uses standard published formulas and is tested against known values, but results are estimates for guidance. Business results are estimates for planning. Consult an accountant for tax and reporting decisions.

Is this tool free and private?

Yes — the Profit Margin Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.

Related tools

Markup CalculatorSet a selling price from your cost and desired markup percentage.Margin to Price CalculatorFind the selling price that achieves a target gross margin on a known cost.VAT CalculatorAdd or remove VAT/GST from any amount at any rate.Commission CalculatorCalculate sales commission earnings from a sale amount and commission rate.Freelance Hourly Rate CalculatorWork out the hourly rate you need to charge as a freelancer to hit your income goal.Straight-Line Depreciation CalculatorCalculate yearly straight-line depreciation and book value of an asset.Payback Period CalculatorFind how long it takes for an investment to pay for itself from annual cash flow.Break-Even CalculatorFind how many units you must sell to cover fixed costs and start making profit.

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