Profit Margin Calculator
Enter cost and selling price to get gross profit, profit margin, markup and cost percentage — and see the difference between margin and markup.
Profit margin
40%
- Gross profit
- $40.00
- Markup
- 66.67%
- Cost percentage
- 60%
Margin = Profit ÷ Price · Markup = Profit ÷ Cost
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost. Cost $60, price $100: profit $40, margin 40%, markup 66.67%.
How do I price for a target margin?
Price = Cost ÷ (1 − margin ÷ 100). For a 40% margin on a $60 cost, price at $100.
What is a good profit margin?
It depends heavily on the industry — grocery retail often runs low single digits while software can exceed 70%.