How to Use the Profit Margin Calculator
1
Enter Item Cost
Input your total unit cost to produce or purchase the item.
2
Enter Selling Price
Input your retail selling price or total revenue.
3
View Net Profit
Inspect total profit dollars earned per unit.
4
Compare Margin & Markup
Review gross margin percentage and markup percentage.
Profit Margin & Markup Formulas
Understanding the mathematical difference between margin and markup:
Gross Margin % = ((Revenue - Cost) / Revenue) × 100
Markup % = ((Revenue - Cost) / Cost) × 100
Net Profit = Revenue - Cost
Why Choose Our Profit Margin Calculator?
Calculates Net Profit ($), Gross Margin (%), and Markup (%)
Real-time calculations as you type
Clean financial metric cards
100% private in-browser tool
Essential for e-commerce and retail pricing
Pro Tips for Best Results
- Margin is profit divided by revenue; markup is profit divided by cost.
- A 50% markup results in a 33.3% gross profit margin.