Profit Margin Calculator

Enter cost and selling price to get gross profit, margin and markup — and finally understand the difference.

Quick answer

A profit margin calculator finds gross profit, margin and markup from cost and selling price. With a $60 cost and $100 price, profit is $40, the margin is 40% and the markup is 66.7%. Margin is measured against price and markup against cost, so margin is always smaller.

$
$
Gross margin
40.00%
Gross profit
$40
Markup
66.67%
Selling for $100 with a cost of $60 leaves $40 gross profit. That is a 40.0% margin (profit as a share of the price) and a 66.7% markup (profit as a share of cost). Margin can never reach 100%; markup can.

Key takeaways

  • Margin = profit ÷ price; markup = profit ÷ cost.
  • Margin can never reach 100%.
  • Gross margin ignores overheads; net margin includes them.
Gross margin — Revenue minus direct costs, expressed as a percentage of revenue.

How the profit margin calculator works

Margin measures profit against the selling price; markup measures it against cost. The same profit always gives a smaller margin than markup.

Formula

Profit = revenue − cost Margin = profit ÷ revenue Markup = profit ÷ cost

Standard formula. Further reading: Investopedia – Profit margin · Investopedia – Markup

Worked example

Cost $60, price $100: profit $40, margin 40 ÷ 100 = 40%, markup 40 ÷ 60 = 66.7%.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

Margin vs markup — what's the difference?

Margin is profit as a share of price; markup is profit as a share of cost. 50% markup = 33.3% margin.

What is a good profit margin?

It varies by industry: grocery can be 1–3% net, software 70%+ gross. Compare with your sector.

Gross vs net margin?

Gross margin subtracts only direct costs; net margin subtracts all expenses, including overheads and taxes.

Can margin exceed 100%?

No. Margin is capped below 100% because profit can never exceed the price.

Embed this calculator

Add this free calculator to your website or blog. Copy the code below:

Need a branded, white-label version for your business? Contact us.

Remove branding → Pro. Your colours, no "Powered by" link, from $7.50/mo.See plans

Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated