Calculate profit margin from revenue and cost. Get margin percentage and profit amount for business analysis. Free online calculator with instant
Choose your path
Calculate gross profit, margin, and markup from a selling price and direct cost without confusing the two percentages.
Price one item and understand the cash retained before operating expenses.
Enter selling price and direct cost, then review profit, margin, markup, and target-price examples.
Can explain why markup and margin differ and avoids treating gross profit as net profit.
Check normal, break-even, loss, and zero-cost scenarios reproducibly.
Change one input at a time and inspect the formula steps and boundary guidance.
Gets mathematically consistent signed outputs without false industry benchmarking.
Run a quick price check at the shelf or supplier meeting.
Enter two currency values on a phone and read the primary margin plus profit without horizontal scrolling.
Completes the calculation with named, tap-sized controls and knows which costs are excluded.
This tool is part of these guided projects. Each project provides step-by-step instructions with checklists and all the tools you need in one place.
Tools you might need next
Convert an entered unit cost and markup-on-cost percentage into markup amount, selling price, and equivalent gross margin with visible steps.
Calculate gross profit and operating profit or loss from net revenue, cost of sales, and operating expenses for one consistent period.
Calculate the theoretical break-even point and minimum whole sellable units, plus target-profit volume, contribution margin, and signed margin of safety.
Gross margin measures profit as a percentage of revenue. It shows how much of each dollar of sales is retained after direct costs.
Gross Margin % = ((Revenue − Cost) ÷ Revenue) × 100The absolute profit is the difference between what you sold for and what it cost to produce or acquire.
Profit = Revenue − CostThis is a gross product or transaction margin based only on the revenue and direct cost entered. Operating expenses, returns, tax, payment fees, financing, and allocation choices can materially change net profitability.
Markup % = Profit ÷ Cost × 100 (undefined when cost is zero)Updated: July 2026
An online seller analyzes gross margin on a product sold for $79 with $32 cost of goods.
→ Profit: $47, margin: 59.5%
A software company calculates gross margin on a monthly subscription with minimal delivery cost.
→ Profit: $87, margin: 87.9%
A seller tests a discounted price equal to or below direct cost and confirms that the calculator reports break-even or a negative margin instead of a positive industry label.
A product with 100% markup has only 50% margin. Markup divides by cost; margin divides by revenue. Convert between them before comparing.
Gross margin excludes rent, salaries, and marketing. A 60% gross margin product can still be unprofitable if operating costs exceed 60% of revenue.
Enter selling price and direct cost to calculate gross profit, margin, and equivalent markup. Review the formula steps, loss/break-even state, and target-price examples while keeping operating expenses outside this simple transaction model.