Profit Margin Calculator for Gross Margin and Markup
Calculate revenue, cost, gross profit, profit margin, markup, and target sale price without a spreadsheet.
Try a common pricing case
Revenue
$49.00
Total cost
$22.00
Gross profit
$27.00
Profit margin
55.10%
Markup
122.73%
Price for 60.00% margin
$55.00
Margin estimate note
Margin and markup results are planning estimates. Confirm taxes, refunds, shipping, platform fees, and accounting treatment before pricing decisions.
Profit margin divides gross profit by revenue, while markup divides gross profit by cost.
That difference matters because a 50% markup is not the same as a 50% margin.
Use per-unit costs
Include product cost, platform fee, shipping, packaging, and handling when they apply per sale.
Separate gross and net profit
This page focuses on gross margin math before taxes, overhead, refunds, and accounting adjustments.
Example
$49 revenue with $22 total cost creates $27 gross profit and a 55.1% margin.
Assumption
Costs and fees are treated as per-unit costs before tax, refunds, or volume discounts.
Limitation
This is planning math, not accounting, tax, or financial advice.
Product pricing
Estimate sale prices that support a target gross margin.
Marketplace fees
Include platform fees and fulfillment costs in per-unit margin math.
Markup comparison
Compare markup and margin so pricing conversations stay clear.
Scenario planning
Test cost changes, discounts, and target price options quickly.
Gross margin calculator
Calculate gross profit and margin from revenue, cost, and per-sale fees.
Markup calculator
Compare markup against margin so pricing assumptions stay clear.
Target margin calculator
Estimate a sale price needed to reach a desired gross margin.
Sale price margin calculator
Check whether a discounted or quoted price still leaves enough gross margin.
Is margin the same as markup?
No. Margin divides profit by revenue, while markup divides profit by cost.
Can I include platform fees?
Yes. Put platform fees, shipping, or handling in the fees field.
Can this help set prices?
It can estimate a target price for a desired gross margin.
How is pricing math processed?
Pricing math is handled in the browser for this tool based on the current public implementation.
Suggested workflow
Pricing scenario path
Work from sale price to margin, then verify percentage assumptions before changing pricing.