Profit Margin Calculator

A profit margin calculator works out how much of a sale is profit and expresses it as a percentage. You enter the cost of an item and the price it sells for, and the tool returns the profit, the gross margin, and the markup. Gross margin is profit divided by the selling price; markup is profit divided by the cost. Both describe the same profit from different angles, which is why a product can carry a 40% margin and a 66.7% markup at the same time.

The distinction matters because margin and markup are constantly mistaken for each other, and the gap widens as prices rise. Marking a product up by 50% does not give a 50% margin: a $10 cost marked up 50% sells for $15, which is a 33.3% margin, not 50%. Pricing from the wrong figure quietly erodes profit on every unit, so this calculator always shows margin and markup together and lets you work from whichever one your supplier, spreadsheet, or accountant uses.

The math is the same for any shop, so it works as a Shopify profit margin calculator, a retail profit margin calculator, or a sales profit margin calculator with no app to install. Fees are not a separate field, so fold them into the cost. Say a product costs $18 to buy, $4 to ship and $1.20 in payment fees: enter 23.20 as the cost and 39 as the selling price. The result is $15.80 profit, a 40.51% gross margin and a 68.1% markup.

You can also run the calculation backwards. Enter a cost and the margin you want to hit, and the tool solves for the selling price you need to charge; enter a selling price and a margin to find the cost you can afford. An optional quantity field scales everything into totals for a batch or an order. Every calculation runs entirely in your browser, so no pricing data is uploaded or stored, and the tool keeps working offline once the page has loaded.