Calculate your profit margin, markup percentage, and gross profit from cost and selling price or revenue.
Choose your calculation mode: "Cost & Selling Price" if you know the individual item cost and its selling price, or "Cost & Revenue" if you know total costs and total revenue for a batch or period.
Enter the cost of your product or service. In cost/selling mode, this is the cost to produce or acquire one unit. In cost/revenue mode, this is your total cost of goods sold (COGS) or total expenses.
Enter either the selling price per unit or your total revenue amount, depending on the mode you selected. This represents the amount your customers pay or your total income from sales.
Click "Calculate" to instantly see your profit in dollars, profit margin as a percentage, and markup percentage. The visual health indicator will show whether your margin is low (under 10%), moderate (10-20%), or healthy (above 20%).
Profit margin measures how much of each dollar of revenue translates into profit. Markup, on the other hand, measures how much you add on top of the cost. While a 50% markup on a $100 cost yields a $50 profit and $150 selling price, the margin on that sale is 33.33% ($50 / $150). Understanding both metrics is essential for pricing strategy.
Measures profitability as a percentage of selling price. This tells you how many cents of profit you earn per dollar of revenue.
Measures how much you add on top of cost to reach the selling price. This is useful for setting prices from a known cost base.
A retail product with a cost of $40 and a selling price of $80. Profit is $80 − $40 = $40. Profit margin is ($40 / $80) × 100 = 50%, meaning half of every dollar of revenue is profit. Markup is ($40 / $40) × 100 = 100%, meaning the price is doubled over cost. This is a healthy retail margin that provides room for discounts and promotions while remaining profitable.
A SaaS product with a delivery cost of $10/month per user and a selling price of $50/month. Profit is $40/month per user. Margin is ($40 / $50) × 100 = 80%, which is excellent for a software business. Markup is ($40 / $10) × 100 = 400%, reflecting the highly scalable nature of digital products where the cost to serve additional customers is minimal.
A restaurant dish with ingredient costs of $5 and a menu price of $12. Profit is $7 per dish. Margin is ($7 / $12) × 100 = 58.3%, which falls within the typical restaurant range. Markup is ($7 / $5) × 100 = 140%. While the margin looks healthy on food cost alone, restaurants must also factor in labor, rent, and overhead, which typically bring the net margin down to 3-15%.
Find answers to the most common questions about profit margin & markup calculator.
