Profit Margin Calculator
Calculate gross margin, markup, and profit from your cost and selling price.
Note: Results are estimates for educational purposes only. Consult a qualified professional before making financial decisions.
How to use
- Enter your cost — what you pay to produce or acquire the product.
- Enter your selling price or revenue — what you charge the customer.
- Click Calculate to see profit, margin, markup, and whether you are profitable.
When people use this
- Pricing products for retail or e-commerce.
- Checking whether a sale price still leaves a profit.
- Comparing margins across different products or services.
- Estimating profitability before launching a new product.
Examples
Simple retail item. Cost $50, selling price $80 gives $30 profit, 37.5% margin, and 60% markup.
Tight margin sale. Cost $70, selling price $75 gives $5 profit, 6.67% margin, and 7.14% markup — thin but profitable.
Selling below cost. Cost $80, selling price $60 gives -$20 profit, -33.33% margin — a loss of 33.33% of revenue.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. A 50% markup gives a 33.3% margin.
What does a negative margin mean?
A negative margin means you are selling below cost — every sale loses money on that product.
Is break-even the same as 0% margin?
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Is this a gross margin or net margin calculation?
This uses gross margin — profit (revenue minus cost) divided by revenue. It does not subtract operating expenses like rent, wages, or marketing.