Money
Profit Margin Calculator
Calculate margin, selling price, cost, and gross profit.
Profit Margin Calculator result
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Selling price$100.00Cost$60.00Gross profit$40.00Profit margin40%
Margin = (price − cost) ÷ price. Maximum cost = price × (1 − target margin).
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How this tool works
Gross profit is revenue minus the entered cost. Profit margin is gross profit ÷ revenue × 100, so it measures profit as a share of selling revenue rather than as a share of cost.
Limits to know
Margin is undefined when revenue is zero and can be misleading when costs or revenue cover different periods. The result is gross margin unless the entered cost includes every relevant expense.