Use our free online margin calculator to quickly calculate your profit margin, profit amount, and markup percentage based on cost and selling price.
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products. The formula is: Revenue - Cost.
The profit margin is a percentage that shows how much of the revenue has turned into profit. Formula: (Gross Profit / Revenue) * 100.
Markup is the amount added to the cost of a product to create profit. Formula: (Gross Profit / Cost) * 100.
Margin is profit relative to revenue, markup is profit relative to cost. Both help in pricing and financial planning.
1. What is a margin calculator?
A margin calculator helps you calculate profit margin, markup, and profit based on your cost and selling price.
2. How do I use this tool?
Enter your product's cost and selling price. Click "Calculate" to view the margin, markup, and profit instantly.
3. Who should use it?
Business owners, freelancers, resellers, and anyone pricing products/services.
4. What is the difference between margin and markup?
- Margin = profit based on selling price
- Markup = profit based on cost price
5. Why is my margin negative?
Because your selling price is lower than the cost price — you’re making a loss.
6. Is this tool free?
Yes! This margin calculator is completely free and works on all devices.