Profit Margin Calculator
Gross profit, margin percentage and markup from revenue and cost.
Quick answer
- Formula: Margin = (Revenue − Cost) / Revenue × 100; Markup = (Revenue − Cost) / Cost × 100
- Worked example — Gross profit: $40.00 (full example below).
Profit Margin Calculator
| Gross profit | $40.00 |
| Profit margin | 40.00% |
| Markup | 66.67% |
Selling at $100 what cost $60 makes a $40 profit — a 40% margin but a 66.67% markup. Same profit, two different percentages.
Margin and markup are the two most-confused numbers in business. Enter revenue and cost: this calculator returns the gross profit, the margin (profit as a share of the price) and the markup (profit as a share of cost).
The formula
Worked example
Selling at $100 what cost $60 makes a $40 profit — a 40% margin but a 66.67% markup. Same profit, two different percentages.
The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.
Frequently asked questions
Why are margin and markup different?
They divide the same profit by different bases: margin uses the selling price, markup uses the cost. Margin can never exceed 100%; markup can.
What is a healthy margin?
It varies enormously by industry — grocery retail often runs 1–3% net margins while software can exceed 70% gross. Compare within your own industry.
Category: Finance calculators
Sources & methodology
This calculator applies the formula shown on this page exactly as written, using the standard definitions for its inputs. Results are computed from the values you enter — no data is stored — and are rounded only for display.
Content last reviewed by CalcHub Editorial.
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