Gross profit
Selling price minus cost price.
BUSINESS & PRICING
Profit Margin Calculator
Calculate gross profit and profit margin from cost and selling price.
Profit margin—
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Margin explained
Profit margin
Gross profit divided by selling price, expressed as a percentage.
Margin vs markup
Margin uses selling price as the denominator; markup uses cost price.
Frequently asked questions
What is the profit margin formula?
Profit margin = profit ÷ selling price × 100.
Is margin the same as markup?
No. Markup measures profit relative to cost, while margin measures profit relative to selling price.
Can margin be negative?
Yes. If the selling price is below cost, the margin is negative.