Profit Margin Calculator
Calculate gross profit, gross margin and markup from selling price and direct cost. Keep margin and markup distinct.
Live result
Gross profit per sale
$19.00
Gross margin
54.29%
Markup on cost
118.75%
Calculated in your browser. No account needed. Your numbers are not sent to Studio24.
The formula
Gross profit = price − direct cost. Gross margin = gross profit ÷ price × 100. Markup = gross profit ÷ cost × 100.
Worked example
A price of 35 and direct cost of 16 gives gross profit of 19, gross margin of 54.29% and markup of 118.75%.
How to use the result
Margin measures profit as a share of price; markup measures profit as a share of cost. Use the same cost definition across products.
What this calculation leaves out
Gross profit is not net profit. Add all relevant direct costs, and assess payment fees, returns, tax and overhead separately.
Put the result to work.
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