Profit Margin Calculator
Compute gross profit margin, markup, revenue, and cost in four directions. Includes a margin-vs-markup explainer so the two never get confused.
Interactive tool
Calculation mode
Given the cost and revenue, find the gross margin percent
Inputs
Result
LiveMargin vs Markup: same profit, different denominator
Margin is profit relative to revenue; markup is profit relative to cost. They are easy to confuse: here is how they line up,
| If margin is... | Markup is... | Pricing rule |
|---|---|---|
| 10% | 11.11% | 1.11× cost |
| 20% | 25.00% | 1.25× cost |
| 30% | 42.86% | 1.43× cost |
| 40% | 66.67% | 1.67× cost |
| 50% | 100.00% | 2.0× cost |
| 60% | 150.00% | 2.5× cost |
| 75% | 300.00% | 4.0× cost |
What is a Profit Margin Calculator?
A profit margin calculator computes how much of every revenue dollar is profit, and how much markup over cost a sale represents. This tool covers four directions: solve for the margin or markup percent given cost and revenue, or solve for the required revenue or cost given a target margin.
How to Use the Profit Margin Calculator
- 1Pick the mode that matches what you know
- 2Enter the two known values (cost, revenue, or margin %)
- 3Optionally add a quantity to see profit per unit
- 4Read the gross profit, margin %, and markup %
- 5Use the margin-vs-markup explainer table to convert between the two
Key features
Four calculation modes
Solve for margin, markup, revenue, or cost depending on what you know
Margin and markup side by side
Always shows both. They are different numbers and easy to confuse
Margin-vs-markup explainer
Built-in conversion table from common margins to their equivalent markups
Per-unit profit
Add a quantity to see the gross profit per item
Step-by-step explanation
See exactly which formula was applied for each result
Multi-currency
30+ ISO 4217 currencies for global commerce
Live as you type
Updates instantly with no submit button
100% private
No costs, prices, or revenues leave your browser
Why Use a Dedicated Profit Margin Tool?
Confusing margin with markup is the most common pricing mistake in retail and SaaS. A dedicated tool that always reports both, plus an explainer table, prevents the kind of error that destroys gross margin without anyone noticing for a quarter.
Common use cases
- Set a list price for a new product given a target margin
- Reverse-engineer a competitor's margin from their list price and your knowledge of their cost
- Convert a quoted "100% markup" into the equivalent margin (50%) before negotiating
- Compute per-unit profit when buying inventory in batches
- Sanity-check a financial model that mixes margin and markup terms
- Plan the cost ceiling for an item that must hit a 40% gross margin
Margin vs markup formulas
- Margin = (Revenue − Cost) / Revenue × 100
- Markup = (Revenue − Cost) / Cost × 100
- They use the same numerator but different denominators
- Markup will always be larger than margin (because cost < revenue)
Common pricing rules
Many wholesalers quote "keystone" pricing: 100% markup, which is a 50% margin. A 2× markup is a 50% margin. A 3× markup is a ~66.7% margin. The explainer table at the bottom of the tool maps every common margin to its markup so the conversion never trips you up.
Gross vs net margin
This tool computes gross margin: revenue minus the direct cost of the goods sold. Net margin further subtracts operating expenses, taxes, and interest. For a quick pricing check, gross margin is the right number: net margin is a financial-statement-level metric.
Tips & best practices
Always quote margin, not markup
Investors, accountants, and SaaS dashboards all default to gross margin. Quoting markup invites confusion.
Check vendor "markup" claims
A vendor saying "we operate on 50% markup" is reporting a ~33.3% margin. Convert before benchmarking.
Round-tripping check
Compute the margin from cost+revenue, then switch to "revenue from cost+margin" with the same margin. You should get back the same revenue.
Watch for negative margin
If revenue < cost, the margin is negative. The calculator handles this case but the printed sentence may look odd.
Use per-unit profit for inventory
Adding a quantity gives you the per-unit gross profit, which is useful when comparing SKU-level economics.
Privacy & security
This profit margin calculator runs entirely in your browser. No costs, revenues, or margin numbers are uploaded, logged, or shared.
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Utilities
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit relative to revenue: (revenue − cost) / revenue. Markup is profit relative to cost: (revenue − cost) / cost. They share the same numerator but use different denominators, so markup is always a bigger percent than the equivalent margin.
How do I convert markup to margin?
margin = markup / (1 + markup). For example, a 100% markup is a 50% margin. A 50% markup is a 33.33% margin. The explainer table on this page lists the common values.
Can margin exceed 100%?
No: margin is bounded between -∞ and just under 100% (it cannot reach 100% unless cost is zero). Markup, by contrast, can be arbitrarily large because the cost is in the denominator.
Is this gross margin or net margin?
Gross margin. It considers only the direct cost of goods sold. Net margin further subtracts operating expenses, interest, and taxes. For pricing decisions, gross margin is the right number.
How is profit per unit computed?
Profit per unit = gross profit / quantity. Add a quantity in the optional field to see the per-item economics; it is useful when comparing SKUs that ship in batches.
Is my data sent to a server?
No. Every calculation runs entirely in your browser. Costs, revenues, and margin numbers never leave your device.