Free Tool
Profit Margin Calculator
Instantly calculate your gross margin, markup, and net profit to ensure your pricing is on point. No signup required.
Profit Margin Calculator
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Selling Price$0.00
Gross Profit$0.00
Gross Margin0.00%
Markup0.00%
Net Profit$0.00
Net Margin0.00%
Break-even$0.00
Understanding Profit Margin vs. Markup
While often used interchangeably, profit margin and markup represent two different perspectives on profitability.Markup shows profit as a percentage of cost, while Margin shows profit as a percentage of revenue.
Formulas
- Gross Profit = Selling Price - Cost of Goods
- Gross Margin = (Gross Profit / Selling Price) × 100
- Markup = (Gross Profit / Cost) × 100
- Net Profit = Gross Profit - Overhead Expenses
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