Profit Margin & Markup Calculator
Calculate gross profit, profit margin, and markup from a selling price and cost without confusing the two percentages.
Your result
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How to use this calculator
- Enter your values in the labeled fields, keeping the displayed units.
- Choose Calculate or press Enter in a single-line field.
- Review the result and the assumptions below before using it.
Formula and method
Profit = revenue − cost. Margin = profit / revenue × 100. Markup = profit / cost × 100.
Worked example
Selling for 100 with a cost of 60 gives 40 profit, a 40% margin, and a 66.67% markup.
What the result assumes
Use figures covering the same product or accounting period. Gross profit does not automatically include overhead, tax, or financing costs.
Common question
Why is markup higher than margin?
Markup uses cost as its denominator; margin uses revenue. They describe the same profit against different bases.