Profit Calculator

Calculate gross profit, profit margin, and markup from revenue and costs. Or find the selling price you need to hit a target margin.

Part of our Business Calculators collection.

Profit Calculator

Free online calculator

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How to Use This Calculator

  1. 1

    Select whether to calculate profit from known revenue+cost, or find a selling price from cost+margin.

  2. 2

    Enter the relevant values.

  3. 3

    See profit, margin %, and markup % instantly.

Profit Formulas

Gross Profit    = Revenue − Cost
Profit Margin % = (Profit / Revenue) × 100
Markup %        = (Profit / Cost) × 100

Selling Price from target margin:
Price = Cost / (1 − Margin% / 100)

Example Calculation

Example: Selling price $150, cost $80

Inputs

calcMode: fromRevenuerevenue: 150cost: 80

Result

Profit: $70 | Margin: 46.7% | Markup: 87.5%

Profit = $150 − $80 = $70. Margin = 70/150 = 46.7%. Markup = 70/80 = 87.5%.

Margin vs Markup — Which Should You Use?

Both measure profitability on the same transaction, but from different reference points. Margin is preferred for financial reporting and industry comparisons because it's expressed as a percentage of revenue. Markup is more intuitive for pricing decisions because you start from your known cost. A 100% markup equals a 50% margin — it's easy to confuse the two, and doing so can lead to significant underpricing.

Frequently Asked Questions

What is the difference between profit margin and markup?
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A $70 profit on $80 cost = 87.5% markup. The same $70 profit on $150 selling price = 46.7% margin. Same money, different perspectives.
What is a good profit margin?
It varies by industry. Retail: 2–5%. SaaS: 60–80%. Restaurants: 3–9%. Professional services: 20–40%. Always compare against your industry benchmark.
How do I use this to set pricing?
Use 'Selling price from cost + target margin' mode. Enter your cost and the margin you need to hit. The calculator gives you the minimum selling price to achieve that margin.

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