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Calculate profit margin and markup

Enter a cost and selling price to compare gross profit, margin and markup. Use the same currency and quantity basis for both amounts.

Calculations run in your browser. The amounts you enter are not uploaded or stored by this tool.

How it works

  1. Enter the cost of one item or a matching batch.
  2. Enter its selling price, using the same currency and excluding sales tax consistently.
  3. Read gross profit, margin and markup, then copy or share the results.

Margin and markup use different denominators

Gross profit = selling price − cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ cost × 100. A cost of 60 and selling price of 100 produce 40 profit, a 40% margin and a 66.67% markup. A 40% markup on 60 instead produces a price of 84.

Losses and zero amounts

Selling an item that costs 80 for 60 gives a loss of 20, a −33.33% margin and a −25% markup. If selling price is zero, margin has no denominator and is shown as undefined. If cost is zero, markup is undefined. Gross profit can still be calculated, including when both are zero.

What this estimate includes

This is gross profit for the costs you enter, not an estimate of net profit after all business expenses. Include fees, shipping or other costs in your cost amount if you want them reflected. Taxes, discounts and exchange rates are not added automatically. Inputs must be between zero and one trillion; ratios use full precision before display rounding.

Worked examples

Profit Margin Calculator worked examples
CostSelling priceGross profitMarginMarkup
60.00100.0040.0040%66.67%
80.0060.00-20.00-33.33%-25%
0.00100.00100.00100%–
10.000.00-10.00–-100%
0.000.000.00––

Frequently asked questions

Is profit margin the same as markup?

No. Margin divides profit by selling price; markup divides profit by cost. With cost 60 and price 100, margin is 40% while markup is about 66.67%.

Can I use pounds, euros or Canadian dollars?

Yes. Select a display currency and enter both amounts in that currency. Choosing a currency changes the label only; it does not convert exchange rates.

Why does a percentage say undefined?

A percentage cannot be calculated with a zero denominator. Margin is undefined at zero selling price, and markup is undefined at zero cost.

Can I enter a loss?

Enter nonnegative costs and selling prices. Selling below cost produces negative profit, margin and markup automatically.

Sources

Last reviewed: October 16, 2026

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