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Profit Margin Calculator

Calculate gross profit margin and markup percentage.

Parameters & Inputs

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Set your values on the left and click Calculate to view instantaneous results.

About Profit Margin Calculator

Profit Margin Calculator derives gross margin, markup and profit from cost and selling price — three numbers that people routinely confuse.

Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. A 50% markup is only a 33.3% margin.

How to use Profit Margin Calculator

  1. 1

    Enter cost and price

    Your unit cost and the price you sell at.

  2. 2

    Read both ratios

    Margin and markup are shown side by side so the difference is obvious.

  3. 3

    Work backwards

    Set a target margin to see the price you need to charge.

Questions about Profit Margin Calculator

Margin or markup — which should I use?

Margin for profitability analysis, markup for pricing decisions. Mixing them up overstates profit.

Why is margin always lower than markup?

They use different denominators: price is larger than cost, so the same profit is a smaller percentage of it.

Should shipping be in the cost?

Yes, landed cost — product plus freight plus duties — is the honest basis for margin.

Can margin be negative?

Yes, when you sell below cost. The calculator shows it as a negative percentage.

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Last updated November 2026. Files are processed on FilePlume's own hardware and deleted within 60 minutes; nothing is used for training.