Profit Margin Calculator
Find your profit and margin from cost and selling price.
Your answer
Turn on JavaScript to use this calculator. The formula is explained below so you can work it out by hand.
How this calculator works
Profit margin tells you how much of each sale you keep after the cost of the item.
Gross profit = price − cost
Profit margin = gross profit ÷ price × 100
This is gross margin on a product. It doesn't subtract overhead like rent, software, or your own time. To see net margin for a whole business, use total revenue and total expenses for the same period.
Example
You buy a product for $40 and sell it for $60. Profit is $20, and the margin is $20 ÷ $60 = 33.33%. The markup on cost is $20 ÷ $40 = 50%.
Category: Small Business, Money & Pay