Profit Margin Calculator
Enter what an item costs you and what you sell it for to see your profit, margin and markup.
Profit margin 40%
- Gross profit $40.00
- Markup 66.67%
Formula
- Profit = selling price − cost
- Margin = profit ÷ selling price × 100
- Markup = profit ÷ cost × 100
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. A 50% markup equals a 33.3% margin.
What is a good profit margin?
It depends on the industry: retail often runs at 20%–50% gross margin, while software can exceed 70%.