Profit Margin Calculator

Calculate gross profit margin, profit, markup and target prices entirely locally.

Calculate profit margin

The calculation runs entirely in your browser.

Revenue / selling price

Direct cost

Gross profit margin

40.00%

Gross profit: $40.00
Gross profit margin: 40.00%
Markup on cost: 66.6667%
Cost ratio: 60.00%
Total direct cost: $60.00

Calculation

Margin = (revenue − total direct cost) ÷ revenue. Markup instead uses cost as its denominator.

$100.00 − $60.00 = $40.00

This calculates gross margin; overhead, taxes and financing are not included automatically.

Good to know

The profit margin calculator calculates directly in your browser either the margin from revenue and cost, the revenue required for a target margin, or the maximum allowed direct cost for a target margin. Margin = (revenue − total direct cost) ÷ revenue; markup, by contrast, uses cost as the denominator — a common point of confusion.

Typical searches include calculate profit margin, margin calculator, and calculate selling price. Calculation runs locally in the browser. The gross margin is calculated; overhead, taxes, and financing are not automatically included. Additional fixed costs and a revenue-based fee can optionally be factored in.

Typical use cases

Check margin from existing revenue and cost

Enter revenue and direct cost to calculate the actual gross margin of a product or order.

Calculate the selling price for a target margin

Enter the direct cost and desired target margin to determine the required selling price or revenue.

Determine the maximum cost for a target margin

Enter revenue and target margin to calculate the maximum allowed direct cost, for example when negotiating purchasing or supplier terms.

Tips for better results

Don't confuse margin and markup

Margin uses revenue as the denominator, markup uses cost — with the same profit amount, the two produce different percentages.

Only include direct costs

The calculator determines gross margin from direct costs; overhead, taxes, and financing costs should be calculated separately.

How it works

Step by step

1
Choose the calculation direction
Choose whether to calculate margin, required revenue, or maximum cost.
2
Enter the values
Enter revenue, cost, or target margin depending on the chosen direction, and optionally additional costs or fees.
3
Review the result and calculation path
Review profit, margin, markup, and other metrics, and copy the result if needed.

Features

Three calculation directions

Calculate margin from revenue and cost, required revenue, or maximum cost for a target margin.

Factor in additional costs and fees

Optionally factor additional fixed costs and a revenue-based fee into the calculation.

Margin and markup shown separately

Both metrics are shown transparently with their respective formula to avoid confusion.

Frequently asked questions

What's the difference between margin and markup?

Margin = profit ÷ revenue × 100, markup = profit ÷ cost × 100 — with the same profit amount, the percentages differ.

Are taxes and overhead included?

No. The gross margin is calculated from direct costs; overhead, taxes, and financing are not automatically included.

Are my inputs uploaded?

No. Calculation runs entirely locally in the browser.

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