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%.

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