Profit as a share of revenue

Profit margin calculator

Enter cost and selling price to find gross profit and the percentage of each sale that remains before costs you did not include.

Formula and worked example

How to calculate profit margin from cost and selling price

Gross profit = selling price − direct cost. Profit margin = gross profit ÷ selling price × 100.

For a $60 direct cost and a $100 selling price, gross profit is $40 and profit margin is $40 ÷ $100 × 100 = 40%. Markup is different: $40 ÷ $60 × 100 = 66.666667%.

This is a gross per-sale calculation using only the direct cost you enter. It does not calculate net profit or decide which costs belong in your price.

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Display currency

The symbol changes presentation only. MarginCalc never converts currency or infers a country.

Known values

Example: an item costs $60 and sells for $100.

MarginCalc performs gross pricing arithmetic from your inputs. It does not know which labor, overhead, tax, shipping, return, payment, or marketplace costs your decision should include.