Enter cost and selling price to see gross profit, profit margin and markup side by side.
Profit margin = (selling price − cost) ÷ selling price × 100.
Subtract cost from selling price to get gross profit. Divide that profit by the selling price and multiply by 100 to get profit margin.
Margin measures profit as a percentage of the selling price. Markup measures profit as a percentage of cost. They describe the same transaction from different baselines, so the percentages are usually different.
A 40% gross margin means 40% of the selling price remains after the entered cost is subtracted.
No. Margin divides profit by selling price, while markup divides profit by cost.
No. This simple calculator compares the cost and selling price you enter. Add all relevant costs into the cost figure if you want a broader estimate.