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About Profit Margin Calculator Online
This tool calculates gross profit margin from revenue and cost. Enter what you charge and what it costs to produce, and it returns the profit (revenue minus cost), the gross margin percentage, and the markup percentage. All three numbers describe the same sale but answer different business questions.
Profit margin tells you what percentage of revenue you keep as profit — a key health metric for any business. Industries vary widely: software margins routinely exceed 80%, while retail and grocery margins often sit in the 2–5% range. Knowing your margin helps benchmark against your industry and spot pricing problems early.
Run the calculator before quoting customers, after closing a job, or when reviewing your books to make sure your real margins match what you planned.
How to use this tool
How to compute profit margin from cost and selling price
Enter the cost
"Cost" is the all-in cost basis per unit — supplier price plus inbound freight and any per-unit fees you want included. Use the same currency as Selling price.
Selling price
"Selling price" is what you charge the buyer (pre-tax). If the buyer pays tax separately, exclude it; if you list a tax-inclusive price, subtract tax before entering.
Press Run
Result returns marginPercent = (price − cost) / price × 100, rounded to 2 decimals. Margin is calculated on price, not on cost — that's the difference vs markup.
Reading the number
A 30% margin means $30 of every $100 of revenue is gross profit. Negative margins (cost > price) indicate selling at a loss. For target margin → required price, solve `price = cost / (1 − target/100)` by hand.