Profit Margin Calculator
Enter your cost and selling price to see gross profit, profit margin, and markup at once, updating as you type.
Plain numbers in any currency. Calculated in your browser; nothing is uploaded.
Margin measures profit against the selling price and markup measures the same profit against the cost, so markup is always the larger of the two.
How to calculate profit margin
Enter the cost
Type what the item costs you to make or buy as a plain number in any currency. There is no button to press.
Enter the selling price
Type the price you sell it for. The gross profit, margin, and markup appear and update with every keystroke.
Read and copy the result
Compare the margin and markup percentages, then click Copy result to put a one-line summary on your clipboard.
Why use this tool
Margin and markup together
The two figures people mix up are shown side by side. Margin is profit as a share of the selling price, markup is profit as a share of the cost, so you never quote the wrong one.
Gross profit in currency
Alongside the percentages you get the plain money amount, the selling price minus the cost, so you know exactly what each sale leaves you.
Loss is flagged, not hidden
If the cost is higher than the selling price the profit turns negative and is labelled a gross loss, with the margin and markup shown as the negative percentages they are.
Recalculates as you type
Change the cost or the price and every figure follows immediately. There is nothing to submit and no page reload.
Runs entirely in your browser
Your cost and price figures are processed by the page alone. Nothing you type is uploaded, stored, or logged.
About this tool
This profit margin calculator turns a cost and a selling price into the three numbers a seller actually needs: the gross profit in money, the profit margin as a percentage, and the markup as a percentage. Enter both figures and everything updates as you type, with no button to press. Gross profit is simply the selling price minus the cost. Profit margin expresses that profit as a share of the selling price, so a 40 item sold for 100 has a 60 percent margin. Markup expresses the same profit as a share of the cost instead, so that same item carries a 150 percent markup.
Margin and markup are the two figures most often confused, and quoting one when you mean the other can quietly wreck your pricing. Showing them together makes the gap obvious: a healthy sounding 150 percent markup is only a 60 percent margin, and the difference grows as prices rise. Use the calculator to set a price from a target margin, to sanity check a supplier quote, or to compare products whose costs differ. If the cost ends up above the price, the tool reports a gross loss rather than pretending the numbers work.
Results are plain numbers to two decimal places, so the tool works in any currency, and tax is deliberately left out since it varies by place and product. If the selling price is zero the margin is undefined, and if the cost is zero the markup is undefined, so those cases are shown as not applicable instead of a broken figure. Everything is calculated in your browser and nothing you type leaves the page. For general percentage questions try the percentage calculator, and for working a sale price down from a list price the discount calculator is the better fit.
Frequently asked questions
- What is the difference between margin and markup?
- Both measure the same gross profit, but against a different base. Margin divides profit by the selling price, so it can never exceed 100 percent. Markup divides profit by the cost, so it has no upper limit. A 40 cost sold for 100 is a 60 percent margin and a 150 percent markup.
- How is profit margin calculated?
- Gross profit is the selling price minus the cost. Profit margin is that profit divided by the selling price, times 100. Markup is the profit divided by the cost, times 100. The tool does all three at once as you type.
- What happens if the cost or selling price is zero?
- If the selling price is zero the margin cannot be divided and is shown as not applicable. If the cost is zero the markup is shown the same way. The gross profit is still calculated in both cases.
- Does it include sales tax or VAT?
- No. The figures are the gross profit before any tax, using the cost and price you enter. Tax rules differ by country, state, and product, so apply your local rate separately if you need an after-tax number.
- Is anything I type uploaded?
- No. Your cost and price are processed entirely in your browser. Nothing is sent to a server, stored, or logged, and the result is a plain number that works in any currency.
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