Gross profit
Subtract the unit cost from the selling price. A positive result is a gross profit; a negative result is a loss.
FREE PROFIT MARGIN CALCULATOR
Free Profit Margin Calculator
Use this free profit margin calculator to calculate gross profit, gross margin and markup from cost and selling price, or find a price for a target margin.
FREE TO USE INSTANT RESULTS BROWSER-BASED
01 / CURRENT PRICE
Check profit on a sale
Calculate gross profit, margin and markup from your cost and selling price.
Gross profit / unit—
Gross margin—
Markup on cost—
02 / TARGET PRICE
Find a selling price for your target
Estimate the required price from cost and target margin or markup.
Price for target margin—
Price for target markup—
This is a gross calculation using only the cost and selling price you enter. Add relevant operating costs to your cost figure; consider tax, payment fees, shipping and overhead separately.
HOW IT WORKS
Calculate gross profit, margin and markup
Compare cost and selling price to see gross profit per unit, gross margin and markup. You can also estimate a selling price from a target margin or markup.
Margin versus markup
Margin divides profit by selling price, while markup divides profit by cost. They are not interchangeable.
Target selling price
For a target margin below 100%, divide cost by one minus the target margin expressed as a decimal.
FREE PROFIT MARGIN CALCULATOR
Calculate gross profit, margin and markup
Compare cost and selling price to see gross profit per unit, gross margin and markup. You can also estimate a selling price from a target margin or markup.
Enter your unit cost
Use the cost amount you want to compare. Add other business costs separately in your own cost figure when relevant.
Enter the selling price
Add the price charged to the customer to calculate gross profit, margin and markup.
Set a target margin
Optionally enter a target gross margin to estimate the selling price needed to achieve it, before other costs or taxes not included in the inputs.
Margin and markup are different ratios. Gross margin divides profit by selling price; markup divides profit by cost. This page calculates the two separately.
Profit Margin Calculator FAQs
What is the difference between profit margin and markup?
Gross margin is profit divided by selling price. Markup is profit divided by cost. The percentages differ because they use different denominators.
How do I calculate gross profit margin?
Subtract cost from selling price to find gross profit, then divide gross profit by selling price and multiply by 100.
Does this include GST, fees or overhead?
The calculation uses only the cost and selling price you enter. Add relevant costs to your cost figure and treat tax, fees and overhead according to your accounting method.