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Profit Margin Calculator

Calculate gross profit, margin percentage and markup from cost and selling price.

FreeNo loginBrowser basedPrivacy friendly
By MerQPrime Editorial TeamUpdated 2026-06-20Reviewed 2026-06-20Editorial policy
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Overview

About the Profit Margin Calculator

Understand whether your pricing covers costs and leaves healthy profit. Enter cost price and selling price to see profit amount, gross margin percentage, markup percentage and a clear breakdown — essential for retailers, D2C brands and freelancers.

Benefits

How it works

  1. 1Enter the cost price (what you pay to make or buy).
  2. 2Enter the selling price (what the customer pays).
  3. 3View profit, margin % and markup % instantly.
  4. 4Adjust prices until margin meets your target.

Applications

Use cases

  • Set wholesale and retail prices for products.
  • Evaluate whether a new SKU is worth selling.
  • Compare margin across product lines.
  • Explain margin vs markup to sales teams.

Support

Frequently asked questions

What is gross profit margin?
Margin % = (Selling price − Cost price) ÷ Selling price × 100. It shows what share of revenue is profit before operating expenses.
What is markup vs margin?
Markup % = (Selling price − Cost) ÷ Cost × 100. Margin uses selling price as the base; markup uses cost. A 25% margin equals a 33.3% markup.
What is a good profit margin?
Varies by industry — retail may target 20–50% gross margin, SaaS often higher. Compare against competitors and ensure net margin covers rent, salaries and taxes.

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Profit Margin Calculator – Gross & Net Margin %