FREE CALCULATOR
Profit margin calculator
Before listing a new product or comparing a wholesale quote, use selling price and unit cost to calculate gross profit, margin, and markup.
Your numbers
Start with the example, then make it yours.
Changes the unit only. No exchange-rate conversion.
Saved in this tab only. Reset clears saved inputs.
Your results
ProfitPilot- Gross profit per unit
- $15.00
- Markup
- 150%
Where the revenue goes
- Cost per unit
- $10.00
- Profit
- $15.00
Margin divides profit by the selling price. Markup divides profit by cost. A 50% markup is a 33.33% margin.
Amounts are rounded for display; calculations use the full values. Round a target price up to your currency’s smallest unit before selling.
Behind the numbers
Behind the numbers
Gross profit = selling price − cost
Margin (%) = gross profit ÷ selling price × 100
Markup (%) = gross profit ÷ cost × 100
Rates in formulas are decimals: 30% is calculated as 0.30.
A practical example
A $100 sale isn’t $100 in profit
An online retailer sells an item for $100 that costs $60. Gross profit is $40, margin is 40%, and markup is 66.67%. A 40% markup would produce a different price: $84.
What this includes
- Cost is the product or service cost you enter. If you include shipping or platform fees, the result reflects those costs too.
- Monthly overhead, taxes, and returns are not deducted here. Use the monthly profit calculator for recurring operating costs.
- A zero cost gives a 100% margin; markup is undefined because its denominator is zero.
Common questions
Why aren’t margin and markup the same?
They use different denominators. Margin measures profit as a share of revenue; markup measures the increase over cost. Use margin when comparing the share of revenue retained.
Can my profit margin be negative?
Yes. If an item costs $75 and sells for $50, it loses $25 and has a −50% margin. This is a real loss, not an invalid calculation.