Profit Margin Calculator
Calculate gross margin, markup and profit per unit.
How to use the Profit Margin Calculator
Enter your cost and selling price to see margin and markup — two numbers that are often confused.
Formula
Margin = (Price − Cost) ÷ Price Markup = (Price − Cost) ÷ Cost
Worked example
Buying at $40 and selling at $65 is a 38.5% margin but a 62.5% markup.
Frequently asked questions
What's the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. The same deal always has a higher markup than margin.
Results are estimates for educational and planning purposes. Always confirm important financial, health or legal decisions with a qualified professional. Last reviewed 2026-09-27.