Free Profit Margin Calculator | Calculate Margin & Markup

Features of Our Free Profit Calculator

Our tool gives you the key numbers you need to price your products and grow your business.

Gross Profit

Instantly see your gross profit (the raw cash you make on a sale) in dollars.

Profit Margin (%)

Understand your profitability as a percentage of your revenue. This is the most important metric for business health.

Markup (%)

See your profit as a percentage of your cost. This is crucial for setting a correct and consistent pricing strategy.

Profit Margin vs. Markup: The Critical Difference

Understanding the difference between profit margin and markup is the most important step in pricing your products. Our calculator gives you both, instantly.

The Profit Margin Formula

Profit Margin is your profit's percentage of the selling price (revenue). This formula tells you how much profit your business makes for every dollar it earns.

Profit Margin % = ( (Revenue - Cost) / Revenue ) * 100

Example: You sell a product for $100. It cost you $70.
($100 - $70) / $100 = 0.30
Your Profit Margin is 30%.

The Markup Formula

Markup is your profit's percentage of the cost. This formula tells you how much you've "marked up" your product from its original cost.

Markup % = ( (Revenue - Cost) / Cost ) * 100

Example: You sell a product for $100. It cost you $70.
($100 - $70) / $70 = 0.428
Your Markup is 42.8%.

Why Does This Matter?

If you confuse markup and margin, you can accidentally underprice your products and lose money. Many businesses aim for a "30% margin" but mistakenly calculate a "30% markup," which is a much lower profit margin. Our free profit margin calculator provides both numbers clearly, so you can price with confidence.

Find Your Profit, Margin, & Markup Instantly.

Sample Profit Calculation

Your Gross Profit:

Gross Profit Margin: 40%