Free Profit Margin Calculator

How to Use This Profit Margin Calculator

Use the Margin Calculator tab when you know cost and selling price: enter both and click Calculate to see margin, markup, gross profit, and cost-to-revenue ratio. Use the Markup Calculator when you have a cost and a desired markup percentage: enter them to get the selling price and resulting margin. Use the Revenue from Margin tab when you have a cost and a target margin: enter the cost and desired margin to get the required selling price. Switch currency (USD, GBP, EUR, INR) at the top to match your business.

What Are Profit Margin and Markup?

Profit margin is the percentage of revenue that is profit (after subtracting cost). For example, if you sell something for £100 and the cost was £60, your profit is £40 and your margin is 40%. Markup is the percentage you add to the cost to get the selling price. The same numbers give a 66.7% markup. Both are used in retail, e-commerce, and services to set prices and measure profitability.

When to Use Margin vs Markup

Margin is often used in reporting and comparisons because it shows profit as a share of revenue. Markup is useful when you buy stock and need to set a price (e.g. add 50% to cost). They are related: a 50% markup gives a 33.3% margin; a 50% margin requires a 100% markup. This calculator shows both so you can move between perspectives easily.

Frequently Asked Questions

What is gross profit? Gross profit is revenue minus cost of goods sold (or cost of delivering the service). It does not include other expenses like rent or salaries. Net profit subtracts all expenses.

What is a good profit margin? It varies by industry. Retail might be 20 to 50%; services can be higher. Compare to your sector and aim for a margin that covers costs and leaves room for growth.

Why does my margin differ from my markup? Margin is profit divided by revenue; markup is profit divided by cost. So the same numbers give different percentages. The calculator shows both.

Can I use this for multiple currencies? Yes. Select your currency at the top. The calculator uses that symbol for all amounts. It does not convert exchange rates; use it for single-currency pricing.