About This Tool
The Profit Margin Calculator computes gross profit, net profit margin and markup percentage from cost and revenue figures.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% markup results in a 33.3% margin.
How is gross profit margin calculated?
Gross Profit Margin = ((Selling Price - Cost) / Selling Price) × 100.
Can I work backwards from a desired margin?
Enter your cost and leave the selling price blank, then use the margin formula: Selling Price = Cost / (1 - Desired Margin %).