Profit Margin Calculator
Calculate gross profit, gross margin, markup, target selling price, and maximum cost. Use batch mode to compare multiple products at once.
Markup vs. Margin
They sound similar, but they use different base numbers. Margin uses revenue. Markup uses cost.
Gross margin
Profit divided by selling price.
Margin = (Revenue - Cost) / Revenue
Example: a $100 sale with a $60 cost has a $40 profit, so margin is 40%.
Markup
Profit divided by cost.
Markup = (Revenue - Cost) / Cost
Using the same numbers, a $40 profit on a $60 cost is a 66.67% markup.
Batch Margin Table
Add multiple products to compare gross profit, margin, and markup across your catalog.
| Product | Cost | Price | Profit | Margin | Markup |
|---|---|---|---|---|---|
| Product A | $45.00 | $75.00 | $30.00 | 40.00% | 66.67% |
| Product B | $12.00 | $19.99 | $7.99 | 39.97% | 66.58% |
| Totals | $57.00 | $94.99 | $37.99 | 39.99% | Portfolio view |
How to Use
- Choose the mode that matches what you know: cost and revenue, cost and target margin, or revenue and target margin.
- Enter your amounts to instantly see profit, gross margin, markup, and the pricing target you need.
- Use the markup vs. margin section to avoid mixing up the two percentages when pricing products.
- Scroll to batch mode to compare margins for multiple products and see portfolio-level totals.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit divided by selling price, while markup is profit divided by cost. Because they use different base numbers, a 40% margin is not the same thing as a 40% markup.
How do I calculate selling price from cost and margin?
Divide cost by 1 minus the desired margin as a decimal. For example, if cost is $60 and you want a 40% margin, divide 60 by 0.60 to get a $100 selling price.
Can margin ever be higher than markup?
No. For profitable products, markup will always be higher than margin because markup uses cost as the denominator, which is smaller than selling price.
What does batch mode help with?
Batch mode lets you compare margins across multiple products at once, which is useful for checking catalog profitability, spotting weak items, and reviewing total portfolio performance.