Profit margin calculator
Calculate gross profit and profit margin from your cost and selling price. Understand how much of each sale you keep.
Result for the values shown.
Calculations run in your browser.
What to enter
| Input | Meaning and units |
|---|---|
| Cost | Enter cost using the definition in the method and example. |
| Revenue | Enter revenue using the definition in the method and example. |
Understanding your result
The outputs describe the mathematical scenario you entered. Assumed rates, timing and included costs determine the result; an estimate is not an offer or eligibility decision.
Common mistakes
- Mixing annual and monthly periods, or leaving out a cost that the model does not include.
Check your calculation
- Compare a simple one-period or zero-change case with hand arithmetic before applying a longer scenario.
Calculation checks, sources and review limits
What percentage of a sale is gross profit?
Subtract cost from revenue, then express the profit as a percentage of revenue. This answers how much of each sale is gross profit under your chosen cost definition.
Common uses
- Compare gross margins across products.
- Check the profit share of a quoted selling price.
How it works
Profit is revenue minus cost. Margin divides this profit by revenue, while markup would divide it by cost. Use matching cost and revenue bases; tax-inclusive and tax-exclusive amounts should not be mixed.
Worked example
A sale of 100 with costs of 60 yields a profit of 40 and a margin of 40%.