Quick answer
The Profit Margin Calculator shows gross profit, margin, and markup from cost and price. How it works: Profit = price − cost; Margin = profit ÷ price. For example, with cost of $12, and selling price of $30, the profit margin is 60.0%.
How to use the Profit Margin Calculator
- Enter cost.
- Enter selling price.
- Read profit margin and the breakdown. Use Share to send the exact numbers, or Print to save a PDF.
How it's calculated
- Profit = price − cost
- Margin = profit ÷ price
- Markup = profit ÷ cost
Worked example
With cost of $12, and selling price of $30:
Profit margin: 60.0%. Profit: $18.00.
Questions people ask
Margin or markup: which should I use?
Margin tells you what share of revenue you keep. Markup tells you how much you added to cost. A 50% markup is only a 33.3% margin.