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Free Profit Margin Calculator Online

Calculate gross margin, net profit, and markup percentage — update instantly as you type.

Enter values

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Results

Gross Profit

Gross Margin

Markup

Net Profit (after tax)

Enter values above to see results

How it works

1

Enter cost price

Type the cost price — what you paid to produce or acquire the product.

2

Enter selling price

Enter the price at which you sell the product or service.

3

Set tax rate (optional)

Add a tax rate to see net profit after taxes.

4

Read your results

Gross margin, markup %, and net profit update instantly.

Common use cases

Retail pricing

Set product prices that achieve your target gross margin percentage.

Freelance rates

Calculate whether your hourly rate covers your costs and yields the margin you need.

Wholesale negotiations

Determine the minimum selling price needed to maintain acceptable margins.

Business reporting

Quickly verify margin figures before presenting them in financial reports or pitches.

Frequently asked questions

What is gross profit margin?

Gross profit margin is the percentage of revenue that exceeds the cost of goods sold: (Revenue - Cost) / Revenue × 100.

What is the difference between margin and markup?

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost price. A 50% markup equals a 33% margin.

Is this calculator free?

Yes, completely free. No account or data uploaded.

Can I calculate reverse margin (cost from price + margin)?

Not currently — but you can enter a target price and adjust the cost until the margin matches your target.

What is a good profit margin?

It depends on the industry. Retail averages 2–5%, software 70–80%, services 10–30%.

Does this include fixed costs?

No — this calculates gross margin only. To calculate net margin, include overheads in your cost price.