ClickAndCalc

Profit Margin Calculator

Find gross profit, margin, and markup from cost and selling price.

Gross profit margin40 %(100 − 60) / 100 × 100
Gross profit
40
Markup (%)
66.666667

How it works

Gross profit is revenue minus the entered cost. Margin expresses this profit as a percentage of revenue, while markup compares profit to cost. This tool does not deduct business overhead, interest, or tax, so it does not calculate net profit.

Standard formulamargin = (revenue − cost) / revenue × 100

Worked example

Selling for 100 with a cost of 60 gives 40 gross profit, a 40% margin, and a 66.67% markup.

Frequently Asked Questions

Are margin and markup the same?

No. Margin divides profit by revenue; markup divides it by cost.

Can the margin be negative?

Yes. If cost exceeds revenue, the result represents a gross loss.

What if cost is zero?

Margin is 100% for positive revenue, but markup is undefined because its denominator is zero.

Does it calculate net profit?

No. Entered cost is subtracted from revenue, without separately modelling overhead or taxes.