Profit Margin Calculator
Calculate gross profit or loss, profit margin, and markup from an item's cost and selling price.
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- Retention
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- Export
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How it works
Profit Margin Calculator: a practical guide
A profit margin calculator compares an item's cost and selling price to show gross profit or loss, profit margin, and markup. It is useful for a quick, explicit check before accounting for the wider costs of running a business.
- STEP 01
Enter the direct cost for one item and its selling price in the same currency units.
- STEP 02
Calculate the result to see gross profit or loss, margin, and markup separately.
- STEP 03
Use the figures as a starting point, then account for taxes, fees, shipping, returns, and overhead outside this narrow estimate.
What this tool does and its limits
Gross profit is selling price minus cost. Profit margin divides that profit by selling price, while markup divides it by cost. Because the denominators differ, a 40% margin is not the same as a 40% markup. This tool rounds entered amounts to cents for display. It does not estimate taxes, processing fees, shipping, discounts, returns, overhead, or other indirect costs.
Inputs, selected files, and results stay in your browser. The tool does not upload them to Got A Tool or save them to persistent storage.
Questions
Profit Margin Calculator details
What is the difference between margin and markup?
Margin is profit divided by selling price; markup is profit divided by cost. They describe the same gross profit from different bases, so their percentages differ.
Can this show a loss?
Yes. When selling price is below cost, the result shows a gross loss and negative margin and markup values.
Does it include taxes or fees?
No. It uses only the cost and selling price you enter. Add transaction fees, shipping, returns, and overhead separately.
Is this net profit?
No. It is a gross per-item comparison and does not account for indirect business expenses or tax treatment.
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