Profit Margin Calculator
Enter your cost and selling price to see profit, profit margin and markup instantly. Copy your result or download a professional PDF.
Use the same currency and basis for both amounts. This calculates gross profit before other expenses and taxes.
How to use the profit margin calculator
Enter your cost
Enter what you paid to purchase or produce the product or service.
Enter your selling price
Enter how much you charge your customer, excluding any tax.
Get an instant result
See gross profit, margin and markup. Copy it or download a PDF.
How is profit margin calculated?
Gross profit = Selling price − Cost. Then Profit margin (%) = Gross profit ÷ Selling price × 100. Markup uses the cost instead: Markup (%) = Gross profit ÷ Cost × 100.
Frequently asked questions
Is margin the same as markup?
No. Margin measures profit as a percentage of selling price; markup measures profit as a percentage of cost. For a £60 cost and £100 selling price, margin is 40% and markup is 66.67%.
What happens if the selling price is lower than the cost?
The calculator shows a negative gross profit and a negative margin, indicating a loss.
What happens if my cost is zero?
The profit margin can still be calculated when the selling price is positive. Markup is undefined for a zero cost, so it is shown as N/A.
Is the PDF free and private?
Yes. You can download a professional calculation report without creating an account. Calculation values and PDF generation are processed in your browser.
This is a simplified gross-profit calculation, not net profitability. It excludes tax, payment processing fees, overhead, shipping and other expenses unless they are included in your cost figure. Verify figures before making business decisions.