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Profit Margin Calculator

Calculate gross profit margin from cost and revenue, or the price you need for a target margin. Shows profit and markup. Free calculator.

Gross margin
40%
Profit
40.00
Gross margin
40%
Markup
66.67%

Profit margin explained

Profit margin is the share of the selling price you keep as profit. Sell for $100 something that costs $60 and your gross margin is 40%. To hit a target margin, divide the cost by (1 − margin): a $70 cost needs a $100 price for a 30% margin. Gross margin uses the direct cost of goods; net margin also subtracts overheads, tax and interest. Use the tabs to work in either direction.

How to use it

  1. 1

    Enter cost and price

    Or cost and the margin you want.

  2. 2

    Pick the calculation

    Margin from a price, or price from a margin.

  3. 3

    Read the answer

    Profit, margin and the equivalent markup.

Frequently asked questions

What is the profit margin formula?

Margin = (revenue − cost) ÷ revenue × 100.

What is a good profit margin?

It depends on the industry. Grocery stores run on 1–3% net, software companies often above 20%. Gross margins are much higher than net margins.

Margin vs markup?

Margin divides profit by price; markup divides profit by cost. A 40% margin equals a 66.7% markup.

Is anything stored?

No. Nothing you type leaves your browser.

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