Profit Margin Calculator
Calculate gross profit, gross margin, markup, and cost ratio from selling price or revenue and cost.
Gross margin from price and cost
This calculator estimates gross profit margin from selling price or revenue and cost of goods sold. It also shows markup, because English search results often compare margin and markup side by side.
Margin and markup formulas
Margin uses selling price or revenue as the base. Markup uses cost as the base, so markup is usually higher than margin for the same product.
What to include in cost
- Product cost or cost of goods sold.
- Direct labor, packaging, or materials when they belong to the item sold.
- Marketplace, payment, shipping, return, or discount costs if you want a more conservative gross margin.
- Overhead and operating expenses only if your model intentionally treats them as part of cost.
Frequently Asked Questions
Sources and References
- Margin CalculatorCalculator.net
- Profit Margin CalculatorShopify
- Gross margin definitionInvestopedia
- Margin CalculatorInch Calculator
Calculations are based on the listed reference sources. Links open in a new tab.
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