Profit Margin Calculator

Calculate gross profit, margin and markup from cost and selling price.

Enter your details and select Calculate.

This tool provides an estimate. Verify results before making financial, educational or medical decisions.

Profit margin versus markup

This guide explains how to use the calculator, includes an example, discusses limitations and answers common questions.

Gross profit margin and markup describe the same profit from different bases. Margin uses selling price; markup uses cost.

How to use this calculator

Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Markup % = gross profit ÷ cost × 100.

Worked example

An item costing £60 and selling for £100 has £40 gross profit, 40% margin and 66.7% markup.

When this calculator is useful

Useful for retail pricing, ecommerce, product comparisons and checking whether a sale price covers costs.

When not to rely on it

Gross profit is not net profit. Advertising, marketplace fees, returns, VAT treatment, wages and overheads may be excluded.

Practical tip

List all variable costs before setting a target selling price; compare net profit separately.

Frequently asked questions

Is a 30% markup a 30% margin?

No. A 30% markup on £100 cost gives £130 selling price and about 23.1% margin.

Should I include delivery fees?

Include relevant costs when calculating the profitability of a sale.

What happens if cost is zero?

Markup is undefined when dividing by zero; margin may still be calculable.

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Educational information only. Results are estimates unless otherwise stated. Verify important financial, medical or legal decisions with a qualified professional.