Profit Margin Calculator for Gross Margin and Markup
Calculate revenue, cost, gross profit, profit margin, markup, and target sale price without a spreadsheet.
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.
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.
Is the data uploaded?
No. The calculator runs locally in your browser.
Suggested workflow
Pricing scenario path
Work from sale price to margin, then verify percentage assumptions before changing pricing.