Profit Margin Calculator

What is the Profit Margin Calculator?

Calculate gross profit, profit margin and markup from revenue and cost. Profit margin shows how much of each sale you keep, and markup shows how far price sits above cost — this calculator gives both from the same numbers.

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

Worked example

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

Where the Profit Margin Calculator helps in real life

You sold a batch of products for $4,000 that cost $2,600. The calculator shows $1,400 gross profit, a 35% margin and a 53.8% markup.

You are comparing two product lines. Seeing their margins side by side shows which one really funds the business, even if the other sells more units.

Common mistakes to avoid

• Mixing up margin and markup.
• Leaving out shipping, packaging or platform fees from cost.
• Confusing gross margin with net margin after overheads.
• Comparing margins across very different businesses.

💡 Practical tip: A business with high sales and low margins can still lose money once rent, wages and marketing are paid.

Tips for better results

• Calculate margin per product as well as overall.
• Track margin over time to catch rising costs early.
• Use the margin price calculator to set prices for a target margin.

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

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