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Profit Margin Calculator

Selling something? Find out your gross profit, profit margin and markup in seconds — the numbers every business owner should know.

Profit Margin Calculator

Gross profit, profit margin and markup for any product or service.

Gross profit
–revenue − cost
Profit margin–
Markup–
Revenue–
CostProfit

Revenue minus cost.

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How to use this calculator

Enter your revenue (the selling price) and your cost (what you paid for the item, or what it cost to make and sell). Press Calculate and you will see your gross profit, profit margin and markup percentage.

Formula

Gross profit = revenue − cost

Profit margin = (gross profit ÷ revenue) × 100, so it shows profit as a share of the selling price. Markup = (gross profit ÷ cost) × 100, so it shows how much you added on top of your cost.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 30% margin on a $10,000 sale is the same profit as a 42.86% markup on a $7,000 cost.

What is a good profit margin?

It depends on the industry. A 10–20% margin is solid in many retail businesses, while service businesses often aim for 20–40% or more. Compare yourself with similar businesses, not with other industries.

Can profit be negative?

Yes. If your cost is higher than your revenue, the profit is negative and the margin and markup are negative too. You are losing money on every sale.

Disclaimer: This calculator provides estimates for planning purposes only and is not financial advice.
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