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
How to Use This Calculator
- 1
Select whether to calculate profit from known revenue+cost, or find a selling price from cost+margin.
- 2
Enter the relevant values.
- 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
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.