Profit margin calculator
Estimate gross profit, profit margin, and markup from product cost and selling price.
Total revenue100
Total product cost60
Gross profit40
Profit margin40%Gross profit ÷ selling price
Markup66.67%Gross profit ÷ product cost
Excludes taxes, shipping, labor, fees, and other operating expenses. Use one consistent currency for your inputs.
Profit margin vs. markup
Gross profit is selling price minus cost. Profit margin expresses gross profit as a percentage of selling price. Markup expresses gross profit as a percentage of cost, so margin and markup are different measurements.
For example, a product costing 60 and selling for 100 has a gross profit of 40, a 40% margin, and about 66.7% markup. The calculation does not include taxes, shipping, labor, payment fees, or other operating expenses.
Use the percentage calculator or browse all free tools.