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Profit Margin Calculator

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

How it works

Subtract the cost price from the selling price to find gross profit. Divide that profit by the selling price, then multiply by 100.

Profit margin = (Selling price - Cost price) ÷ Selling price × 100

Use the result carefully

This result is an estimate. Verify important financial, tax, and business decisions with a qualified professional.

Common questions

Frequently asked questions

What is profit margin?

Profit margin is the percentage of the selling price that remains after subtracting the cost.

What is the difference between margin and markup?

Margin compares profit with revenue. Markup compares profit with cost, so the percentages are different.

What is a good profit margin?

A good margin depends on your industry, operating costs, competition, and business model.