Profit Margin Calculator
Enter your cost and revenue to instantly calculate your gross profit, margin, and markup percentages. Essential for pricing products and services correctly.
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How much it costs you to produce or buy the item/service.
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The final price you are charging your customer.
Calculate Selling Price by Target Margin
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Required Selling Price:
Gross Profit Margin
Gross Profit
Markup Percentage
Cost
Revenue
Margin vs. Markup: What's the Difference?
The most common mistake business owners make is confusing profit margin with markup. While both are used to measure profitability, they are calculated differently and give you different insights.
Profit Margin
Margin is based on your Revenue. It tells you how much of every dollar earned is kept as profit.
Margin = (Profit ÷ Revenue) × 100
Markup
Markup is based on your Cost. It tells you how much you added to the original cost to get the selling price.
Markup = (Profit ÷ Cost) × 100