Profit Margin & Markup Calculator
Calculate gross profit, gross margin and markup percentage from cost and revenue. Free business calculator.
Frequently asked questions
- What is the difference between margin and markup?
- Margin is profit divided by revenue, while markup is profit divided by cost. The tool calculates both and notes that a 50 percent markup is only a 33.3 percent margin.
- How do I calculate gross profit?
- Gross profit is simply revenue minus cost, and the tool displays it before converting it into margin and markup percentages.
- Can I use it for pricing decisions?
- Yes. Enter your cost and the price you are considering, and the margin tells you how much of each sale is actual profit.
- What is a healthy margin?
- It varies a lot by industry, so compare your result against benchmarks for your own sector rather than a universal number.
This tool runs entirely in your browser. No data is uploaded anywhere.