Profit Margin Calculator
Calculate margin, markup, and profit from cost and revenue — or work backwards from a target margin.
Cost & Selling Price → Profit Analysis
Gross Profit
Profit Margin
Markup
⚠ Selling below cost — this is a loss.
Margin = profit ÷ revenue | Markup = profit ÷ cost
Cost & Target Margin → Selling Price
Common:
Selling Price
Gross Profit
Margin vs. Markup — What's the Difference?
Profit margin expresses profit as a percentage of the selling price. Markup expresses profit as a percentage of the cost. If an item costs $40 and sells for $65: profit = $25, margin = 25/65 = 38.5%, markup = 25/40 = 62.5%.
These two numbers are often confused. A 50% markup does not equal a 50% margin. To achieve a specific profit margin, use the formula: Selling Price = Cost ÷ (1 − Margin%). For a 40% margin on a $40 item: $40 ÷ 0.60 = $66.67.