ToolKitSphereProfit Margin Calculator: Gross Profit & Markup
Calculate gross profit, net margin percentage, and markup from cost and revenue.
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This profit margin calculator computes gross profit, net margin percentage, and markup based on your product or service's cost and selling price. It's built for small business owners pricing products, freelancers setting service rates, and e-commerce sellers checking whether a listing price leaves enough margin after costs. Enter your cost and revenue figures, and the calculator instantly returns your gross profit in dollars, your margin as a percentage of revenue, and your markup as a percentage of cost, all clearly labeled so there's no confusion between the two related but distinct metrics. Understanding the difference between margin and markup is a common pain point in pricing strategy, and this tool calculates both from the same inputs so you can see them side by side. The calculator is completely free, requires no signup, and runs entirely in your browser, so your business figures are never uploaded or stored anywhere. Scroll down to enter your cost and revenue to see your margins instantly.
Features
- Calculates gross profit in dollars from cost and revenue
- Computes net profit margin as a percentage
- Calculates markup percentage from cost
- Shows margin and markup side by side for comparison
- Instant recalculation as you adjust cost or revenue
- Useful for retail, e-commerce, and service pricing
Why use this profit margin & cost / revenue calculator?
- Instant results with no manual formula math
- Fully private — your business figures are never stored or uploaded
- Accurate standard margin and markup formulas
- Easy to use for quick pricing decisions
- Completely free with unlimited calculations
Frequently asked questions
How is profit margin calculated?
Profit Margin (%) = (Revenue − Cost) / Revenue × 100, expressing your profit as a percentage of the selling price.
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price (revenue), while markup is profit as a percentage of the cost — they use different denominators and are never the same number for a given profit.
What is a good profit margin for a small business?
Good margins vary widely by industry; retail often runs 20-50% gross margin, while service businesses can run much higher, so compare against your specific industry benchmarks.
How do I calculate gross profit?
Gross Profit = Revenue − Cost of Goods Sold. Enter both figures and the calculator returns the dollar amount instantly.
Does profit margin account for all business expenses?
No, gross margin typically only accounts for direct cost of goods sold; operating expenses, taxes, and overhead are usually factored into net margin separately.
Can this calculator help set a selling price?
Yes, by adjusting your revenue input you can see how different selling prices affect your margin, helping you find a price that meets your target profitability.