Profit margin calculator
FinanceCalculate gross profit, profit margin and markup from cost and revenue.
Your results
Calculate profit, margin and markup from cost and revenue.
Margin vs markup
Margin is profit divided by revenue. Markup is profit divided by cost. A 50% margin means the price is double the cost; a 100% markup means the same thing.
Which one should I use?
Use margin when you think in terms of selling price and want to know what percentage you keep. Use markup when you start from cost and want to set the price.
Frequently asked questions
Answers to the most common questions about this tool.
How is this result calculated?
It applies the relevant financial formula to the amounts, terms, and rates you enter.
Does the result include every cost?
Not necessarily; fees, taxes, insurance, and third-party charges may be excluded.
Can I use this as a final financial quote?
No. Use it to compare scenarios and confirm final terms with the relevant provider.
What information do I need to enter?
Enter amounts, rates, and time periods consistently.
What assumptions does the calculation make?
It assumes the values you enter remain constant for the selected scenario.
Sources and methodology
Methodology: Margin, profit, and markup
Calculates profit as revenue minus cost, margin on revenue, and markup on cost.
Results depend on the user including all relevant costs.
References
No external reference is required: the mathematical calculation is described above.
Last reviewed
July 15, 2026