Profit Margin Calculator
Calculate gross profit margin, markup percentage and net profit from cost and selling price, free and instant right in your browser.
Enter Values
Minimum 0
Minimum 0
Before you rely on this: First-pass guide only. Verify safety-critical or regulated work against the relevant standards, your project requirements and a qualified professional.
How to use this calculator
- Enter the cost and the selling price.
- Press Calculate for the profit, margin and markup.
How it works
Profit = price − cost. Margin = profit ÷ price × 100 (against the sale price). Markup = profit ÷ cost × 100 (against the cost) — the two are different.
Worked example
Cost $80, price $100. Profit $20, margin 20%, markup 25%.
Common mistakes
- Confusing margin (profit ÷ price) with markup (profit ÷ cost).
- Mixing a tax-inclusive price with a tax-exclusive cost.
Frequently asked questions
What's a good profit margin?
It depends on the industry — retail can be a few percent, software much higher. Compare against similar businesses.
Margin or markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. The same profit gives a higher markup than margin.
Margin or markup — which should I quote?
Retail usually talks in margin (a share of the sale price); trades often talk in markup (added to cost).
Related tools
- Markup Calculator
- Discount Calculator
- Gross Profit Calculator
- Markup to Margin Converter
- Profit and Loss Percentage Calculator
- Break-Even Calculator
Explore more in Finance, Business, Property & Pricing.
Cite this tool
Zerdly. (2026). Profit Margin Calculator. Retrieved from https://www.zerdly.com/tools/profit-margin-calculator/
Tip: Enter any known values to calculate the remaining results.
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