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Calculators / Business / Profit margin
Profit margin calculator
See profit, margin, and markup side by side.
On this page
Gross margin25%
Markup33.33%
Profit per unit25
Calculator controls
How to calculate
See profit, margin, and markup side by side.
Profit = price − cost; margin = profit ÷ price; markup = profit ÷ cost
Worked example
Cost: 75; Selling price: 100.
Gross margin: 25 %; Markup: 33.33 %; Profit per unit: 25 .
Assumptions and limits
Gross profit only. Include relevant costs to reflect your business.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Margin divides profit by selling price, while markup divides the same profit by cost. They are different percentages even for the same sale.
When this tool is useful
Check whether a proposed price meets your gross-margin target.
Understanding your inputs
| Input | What to enter |
|---|---|
| Cost | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Selling price | Enter a number of at least 0.000001 and no more than 1000000000000. |
Frequently asked questions
Is a 25% markup a 25% margin?
No. A cost of 100 marked up by 25% gives a price of 125 and a margin of 20%.
Is gross profit the same as net profit?
No. Operating expenses, taxes and other costs may still need to be deducted.