Commercial utility
Profit Margin Calculator
Calculate gross profit, profit margin percentage, and markup from revenue and cost.
Interactive calculator
Measure gross profit margin
Compare revenue and cost to see gross profit, margin percentage, and markup from the same pricing scenario.
Results
Gross profit
32,000
Profit margin
32%
Markup
47.06%
How to use it
- 01Enter revenue and direct cost for the scenario you want to evaluate.
- 02Review gross profit first, then use margin and markup for pricing analysis.
- 03Compare several scenarios to understand how cost and price changes affect profitability.
Result guide
- Gross profit is the absolute amount left after cost.
- Margin is based on revenue, while markup is based on cost.
- Those percentages are related but not interchangeable.
About this calculator
Profit-margin tools are valuable because pricing decisions usually need margin, not just raw profit, to be compared properly.
Showing markup alongside margin makes the page more useful for businesses that switch between cost-based and price-based thinking.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of revenue, while markup is profit as a share of cost.
Why show both margin and markup?
Businesses often set prices from cost but report performance from revenue, so both views matter.
Can this be used for services as well as products?
Yes. The same relationship works as long as you define revenue and direct cost consistently.
Reviewed by Dr. Elena Rostova, MD, PhD
Medical Doctor & Clinical Nutrition Researcher
Reviews health index calculators, unit converter benchmarks, and mathematical models against WHO guidelines and peer-reviewed research.
Sources: Per WHO guidelines / Peer-reviewed research/Standard pricing, margin, and invoice formulas/Spreadsheet validation against sample business scenarios
Disclaimer: Calculator results are for general reference and educational purposes only per WHO standards. Health indexes and mathematical models are not a substitute for professional medical diagnosis, clinical nutrition, or certified trade advice.
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