Profit Margin Calculator

Calculate gross margin, net margin, and markup on your products or services. Essential for pricing decisions.

Product/Service Details

$1,000
$1$1,000,000
$1,500
$1$1,000,000

Additional Costs (Optional)

$0
$0$500,000
0%
0%50%

Buying at $1,000 and selling at $1,500

Gross Profit Margin

33.33%

Profit: $500 | Markup: 50.0%

💵Cost Price
$1,000
💰Revenue
$1,500
📈Gross Profit
$500
📊Markup %
50.0%

Profit Breakdown

Revenue$1,500
(-) Cost of Goods$1,000
Gross Profit$500
Net Profit$500

Margin vs Markup

Profit Margin

Profit as a percentage of selling price.

Margin = (Profit / Revenue) x 100

Markup

Profit as a percentage of cost price.

Markup = (Profit / Cost) x 100

Example: A product costs $100 and sells for $150.
Profit = $50 | Margin = 33.3% | Markup = 50%

Pricing Tips

  • Gross margin above 50% is generally considered healthy
  • Net margin of 10-20% is good for most industries
  • Always factor in all costs before setting prices
  • Consider competitor pricing and market conditions
  • !Higher margin doesn't always mean higher profits
  • !Volume and turnover rate matter too