Profit Margin Calculator
Enter what a product costs you and what you sell it for to get your gross margin, profit per unit and markup in one go.
How it works
- 1
Enter your cost
What you pay for the product or service.
- 2
Enter your price
What the customer pays, before tax.
- 3
Read the numbers
Gross margin, profit and markup.
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Frequently asked questions
It depends on the industry. Retail margins are often 20–50%, while software can exceed 70%.
Margin vs markup
Gross margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of the cost: (price − cost) ÷ cost. A product bought for 60 and sold for 100 has a 40% margin but a 66.7% markup.
Mixing the two is a common pricing mistake: adding a 40% markup does not give a 40% margin. Use the markup calculator when you want to start from a cost and a target markup.