Profit Margin Calculator

Gross profit, margin percentage and markup from revenue and cost.

Profit Margin Calculator

Worked example result
Gross profit$40.00
Profit margin40.00%
Markup66.67%

Selling at $100 what cost $60 makes a $40 profit — a 40% margin but a 66.67% markup. Same profit, two different percentages.

Margin and markup are the two most-confused numbers in business. Enter revenue and cost: this calculator returns the gross profit, the margin (profit as a share of the price) and the markup (profit as a share of cost).

The formula

Margin = (Revenue − Cost) / Revenue × 100; Markup = (Revenue − Cost) / Cost × 100

Worked example

Selling at $100 what cost $60 makes a $40 profit — a 40% margin but a 66.67% markup. Same profit, two different percentages.

The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.

Frequently asked questions

Why are margin and markup different?

They divide the same profit by different bases: margin uses the selling price, markup uses the cost. Margin can never exceed 100%; markup can.

What is a healthy margin?

It varies enormously by industry — grocery retail often runs 1–3% net margins while software can exceed 70% gross. Compare within your own industry.

Category: Finance calculators