Profit Margin Calculator Free
See your exact profit margin as a percentage, instantly.
How to use this tool
- 1Enter your revenue or selling price.
- 2Enter the cost of goods or your total cost.
- 3Read the gross margin and the markup side by side.
- 4Adjust either figure to test a different price.
About this tool
Margin and markup get confused constantly, and mixing them up leads to real pricing mistakes: a 50% markup is only a 33% margin, so a business pricing on markup while budgeting on margin quietly under-earns on every sale. This calculator takes revenue and cost and returns both numbers clearly labelled — gross margin as a percentage of revenue, markup as a percentage of cost — along with the absolute profit in currency. It also works in reverse as a sanity check when a client pushes for a discount: drop the price, watch the margin fall, and decide whether the volume is worth it before you agree to anything.
Frequently Asked Questions
What's the difference between margin and markup?
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Margin is profit as a percentage of revenue; markup is profit as a percentage of cost. They are always different numbers for the same sale.
Does this handle multiple products?
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It calculates one product or service at a time. Run it per line item for a mixed order.
Should I include tax in the revenue figure?
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No. Use the pre-tax amount, since collected tax is not your income.