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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