Home › Profit Margin Calculator
Profit Margin Calculator
Free profit margin calculator. Calculate gross margin, markup, and selling price from cost.
Cost vs. Profit
Frequently Asked Questions
How do I calculate profit margin?
Subtract cost from selling price to get profit, then divide by the selling price. A product costing $40 and selling for $100 earns $60, which is a 60% gross margin.
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. The same $40 cost and $100 price is a 60% margin but a 150% markup, which is why the two are easy to confuse.
What price do I need for a target margin?
Divide the cost by 1 minus the target margin. For a 60% margin on a $40 cost, the price is $40 ÷ 0.40, or $100. Switch the calculator to solve for price and it does the arithmetic.
Does this include fixed costs?
Gross margin covers only unit cost. Add monthly fixed costs such as rent and salaries and the calculator also reports profit after those costs and the units you need to break even.