Margin Calculator

Check gross profit, profit margin, and markup from a selling price or revenue amount and the direct cost behind it.

Smoke mascot comparing a $100 selling price, $60 direct cost, $40 gross profit, 40% profit margin, and 66.67% markup cards. — Margin Calculator artwork matches the live workflow: selling price or revenue, direct cost, gross profit, profit margin, and markup. View in the smoke-kawaii gallery

Estimate, not advice Payment or total shown Example inputs Tab-only history

Revenue or selling price ($)Cost ($)

Profit margin40%

$100 revenue - $60 cost

Profit: $40.00
Markup: 66.6666666667%
Revenue: $100.00
Cost: $60.00

This is a gross pricing check, not a full net-profit report, tax record, inventory method, brokerage margin account, or borrowed-money investing guide.

Formula steps

Subtract the direct cost from revenue to find gross profit.
Divide profit by revenue to calculate profit margin.
Divide profit by cost to calculate markup, which uses a different base.

How to use the Margin Calculator

Enter the requested dollar amounts, rates, terms, tax settings, or contribution details.
Use rates as percentages, such as 6.5 for 6.5%, and check whether a field asks for a monthly or annual amount.
Press the calculate button to see the answer, supporting metrics, and formula steps.
Use the result as a planning estimate only, then copy it if the assumptions look right.

What people use it for

Calculate product or service profit margin.

Compare margin and markup side by side.

Check pricing math before changing a selling price.

Estimate how direct cost changes affect gross profit.

Quick examples

Retail item

$100 price and $60 cost

40% margin and 66.67% markup

Service job

$2,500 revenue and $1,400 direct cost

$1,100 profit, 44% margin, and 78.57% markup

Low margin

$1,200 revenue and $1,050 cost

$150 profit, 12.5% margin, and 14.29% markup

Need the guide or a nearby tool?

Need a slower walkthrough, a related calculator, or the full library? These links keep you close to the task you started.

How to use the Margin Calculator See slower examples, input meanings, formula notes, result limits, and mistakes to avoid.
Finance Browse related calculators and utilities in the same category.
Percentage And Ratio Calculator Hub Compare this with the nearby tools and checks in the same job path.
Calculator and utility guides Find more guides that use real tool inputs and example numbers.
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Frequently asked questions

Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.

When should I use the Margin Calculator?

Use it when you want to test the exact inputs on this page: Calculate product or service profit margin. Compare margin and markup side by side. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.

What do the main Margin Calculator inputs mean?

Revenue or selling price means the amount charged for the item, job, order, or sale before you subtract the cost you want to test. Cost means the direct cost you want to compare with the sale, such as item cost, material cost, or a job cost you already know.

Why are margin and markup different?

They use different bases. Margin divides profit by selling price. Markup divides profit by cost. A $100 sale with $60 cost has $40 profit, 40% margin, and 66.67% markup.

Is this gross margin or net margin?

This is a gross-style pricing check because it compares revenue with the cost you enter. Net margin needs more business expenses, such as overhead, payroll, taxes, software, rent, refunds, and payment fees.

Should I include sales tax in revenue?

Only include sales tax if that is how you track the sale in your own records. For clean pricing math, many people use the before-tax selling price and keep tax separate.

What is the Margin Calculator doing with my numbers?

In plain language: Profit = revenue - cost. Profit margin = profit / revenue. Markup = profit / cost. Margin uses the selling price as the base; markup uses cost as the base. For a $100 selling price and $60 cost, profit is $40. Margin is $40 / $100 = 40%. Markup is $40 / $60 = 66.67%.

How should I read the Margin Calculator answer?

Read profit dollars first, then margin percent, then markup percent. If markup looks bigger than margin, that is expected because cost is the smaller base.

What does this estimate leave out?

This is gross pricing math, not a full accounting statement. It does not include overhead allocation, labor you did not enter, shipping, refunds, payment fees, taxes, inventory rules, net margin, brokerage margin accounts, or borrowed-money investing risk. For tax, inventory, net profit, or financial statements, use your accounting records and include every cost your business actually needs to count.

What should I double-check before copying the result?

Use the same unit or time period for revenue and cost. Do not compare one item of revenue with a full month of costs.

Does the site save my finance inputs?

No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.