Profit Margin and Markup Calculator
Calculate gross profit, gross margin, and markup from cost and selling price. Understand the difference between margin and markup with a simple example.
02 / YOUR RESULT
Start with your numbers.
The example calculates when this page loads.
How the calculation works
Gross profit = selling price - cost. Gross margin = gross profit / selling price × 100. Markup = gross profit / cost × 100.
A calculation you can check.
A $2,000 selling price with $1,200 in cost produces $800 gross profit. The gross margin is 40%, while the markup is 66.7%. Both describe the same transaction using different bases.
When to use this calculator
Use this margin and markup calculator to check a quote, compare product economics, or translate pricing language between teams. Enter the cost and selling price for the same unit or job. If the selling price is lower than cost, the calculator reports a negative gross profit and negative percentages, making a loss visible rather than silently treating it as zero.
Assumptions and limits
Keep your cost definition consistent. A product cost that includes freight cannot be compared fairly with one that excludes it. Gross profit is before overhead and other expenses under this model. If you already know the margin you want but do not know the selling price, use the service pricing calculator instead of guessing a markup.
Before you use the result.
Why is markup higher than margin on a profitable sale?
The same profit is divided by a smaller denominator: cost rather than selling price.
Can the result be negative?
Yes. Selling below the entered cost creates negative gross profit, margin, and markup.
Why are zero inputs restricted?
A zero cost makes markup undefined, and a zero selling price makes margin undefined. Both must be positive in this calculator.
Calculator inputs are processed on your device and are not saved by this tool or sent to MNMVL. The optional CSV download includes your current inputs and result. These are simplified business planning models, not accounting, tax, or investment advice.