CalcTower
Finance CalculatorsClient-Side Calculation Engine

Profit Margin Calculator

Calculate profit margin percentage and profit from revenue and cost.

Calculator Inputs
Instant Math

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Results & Calculation SummaryVerified

Gross Profit Margin %

40.00%

With revenue of $1,000.00 and costs of $600.00, total profit is $400.00. This represents a gross profit margin of 40.00% (and a markup of 66.67%).

Total Net Profit

$400.00

Equivalent Markup %

66.67%

What is Profit Margin Calculator and How is it Calculated?

The CalcTower Profit Margin Calculator calculates gross profit, gross margin percentage, and markup percentage from revenue and product cost.

Worked Calculation Examples
E-commerce Product Sale
Input:Revenue: $1,000.00 | Cost: $600.00
Output:Profit: $400.00 | Margin: 40.00% | Markup: 66.67%

$400 profit / $1,000 revenue = 40% gross profit margin.

Common Real-World Use Cases

Evaluating a Product’s Profitability

Check the gross margin percentage a product actually earns after its direct cost, not just the markup applied.

Comparing Margins Across Products

Run several products’ revenue and cost figures to see which ones carry the healthiest margin.

How to Use the Profit Margin Calculator
  1. 1Enter Total Revenue (Selling Price).
  2. 2Enter Total Cost (COGS).
  3. 3View Gross Profit, Profit Margin %, and Markup %.
Pro Tips & Suggestions
  • •Profit Margin can never exceed 100%, whereas Markup % can easily exceed 100%.

Frequently Asked Questions

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