Business
Profit Margin Calculator
Calculate margin, markup, revenue, and profit. Everything stays private in your browser.
About this tool
Profit Margin Calculator
Use this calculator to see how a product or service price translates into gross profit, profit margin, and markup. These measurements sound similar but answer different questions: margin compares profit with revenue, while markup compares profit with cost.
Enter the cost to deliver one unit and the price charged to the customer. The results update together so you can test a new price without rebuilding a spreadsheet.
Quick guide
How to use Profit Margin Calculator
- Enter the total cost for one product, order, or service.
- Enter the selling price before tax.
- Compare gross profit, margin percentage, and markup percentage.
Practical uses
What you can do with it
- Set ecommerce product prices
- Quote freelance or service work
- Compare supplier costs
- Check whether a promotion stays profitable
Common questions
Profit Margin Calculator FAQ
What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost. The dollar profit is the same, but the percentages use different base numbers.
What costs should I include?
Include every variable cost tied to the sale when possible, such as inventory, packaging, transaction fees, shipping subsidies, and direct labor. Fixed overhead can be included if you allocate it consistently.
Can profit margin be negative?
Yes. If cost is higher than selling price, gross profit and margin are negative, which indicates a loss before any additional overhead.