ToolNest

Profit Margin Calculator

Profit, margin and markupRuns locally · nothing uploaded

Gross margin
40%
Profit
40
Markup
66.67%
Also works as:profit calculatormarkup calculatorgross margin

How it works

When to use it

  • Check a product's margin before setting a price.
  • Keep margin and markup straight.

Formula

Profit = price − cost
Margin = profit ÷ price × 100%
Markup = profit ÷ cost × 100%

Worked example

Given: Cost $60, price $100

  1. Profit = $40.
  2. Margin = 40 ÷ 100 = 40%.
  3. Markup = 40 ÷ 60 ≈ 66.67%.

Result: 40% margin, 66.67% markup.

Reading the result

  • For a 40% margin, price = cost ÷ (1 − 0.40). Marking up 40% (60 × 1.4 = $84) only yields a 28.6% margin.
  • Margin can't exceed 100%; markup can.

Limitations

  • Gross margin only — shipping, fees, marketing and overhead aren't deducted.

How to use

  1. 1Enter the cost.
  2. 2Enter the selling price.
  3. 3Read the profit, margin and markup.

FAQ

How do I calculate profit margin?

Margin = (price − cost) ÷ price × 100%.

What is the difference between margin and markup?

Margin is based on the selling price, markup on the cost. With cost 60 and price 100, margin is 40% and markup is 66.67%.