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FREE BUSINESS CALCULATOR

Profit Margin Calculator

Calculate gross profit, margin percentage and markup from revenue and cost.

Calculate your profit margin

Gross profit—
Profit margin—
Markup—

Results update automatically as you enter values. Estimates are for educational use and do not replace professional financial advice.

How profit margin works

Gross profit = revenue − cost. Profit margin = gross profit ÷ revenue × 100%. Markup = gross profit ÷ cost × 100%.

Example

If an item sells for $125 and costs $75, gross profit is $50, profit margin is 40%, and markup is about 66.67%.

Important limitations

This calculator excludes taxes, financing and other operating expenses. Interpret results using your chosen definition of cost.