Profit Calculator

Profit is the money left over after subtracting costs from revenue. Profit margin expresses profit as a percentage of revenue — how much of each dollar earned you actually keep. Markup expresses profit as a percentage of cost — how much you've added on top of what you paid. This calculator handles all three, plus reverse calculations and quantity-based totals for business planning and pricing.

✓ Select a calculation mode, enter values, and click Calculate

Calculation Mode

Click "Calculate" to see your results.

How to Calculate Profit

Profit is simply the difference between what you receive (revenue) and what you spend (cost): Profit = Revenue − Cost. If you sell a product for $100 and it cost you $60, your profit is $40.

Profit Margin tells you what percentage of your revenue is profit: Margin = (Profit / Revenue) × 100. A 40% margin means you keep $0.40 of every dollar earned.

Markup tells you how much you've added on top of your cost: Markup = (Profit / Cost) × 100. A 66.7% markup on a $60 item means you've added $40.

Margin vs. Markup: These are often confused. For the same $100 sale at $60 cost: margin is 40% (profit ÷ revenue) while markup is 66.7% (profit ÷ cost). Margin is always less than markup for the same transaction — a common pricing mistake is using them interchangeably.

Profit Formulas

Profit

Profit = Revenue − Cost

The absolute dollar amount earned after expenses.

Profit Margin

Margin = (Profit / Revenue) × 100

Profit as a percentage of selling price.

Markup

Markup = (Profit / Cost) × 100

Profit as a percentage of cost.

Selling Price from Margin

Price = Cost / (1 − Margin/100)

Find the selling price needed to achieve a target margin.

Selling Price from Markup

Price = Cost × (1 + Markup/100)

Find the selling price from a desired markup percentage.

Cost from Margin

Cost = Revenue × (1 − Margin/100)

Find the maximum cost to maintain a target margin.

Profit Calculator Examples

Example 1: Product Sale

Sell for $100, costs $60.

Revenue	$100.00
Cost	$60.00
Profit	$40.00
Margin	40.00%
Markup	66.67%

Example 2: Retail Markup

Cost is $25, want 100% markup.

Cost	$25.00
Markup	100%
Selling Price	$50.00
Margin	50.00%

100% markup ≠ 100% margin. The margin is 50%.

Example 3: Quantity

Unit price $50, unit cost $30, 200 units.

Total Revenue	$10,000
Total Cost	$6,000
Total Profit	$4,000
Per Unit Profit	$20.00

Why Profit Calculation Matters

Pricing Products

Set prices that achieve your target margin or markup and protect your bottom line.

Retail & Business Planning

Plan inventory purchases and set wholesale vs. retail pricing tiers based on margin targets.

Ecommerce

Factor in cost, shipping, platform fees, and advertising to ensure each sale is profitable.

Service Businesses

Calculate margins on consulting or agency work by comparing rates against labor costs.

Comparing Profitability

Use margin to compare profitability across different products or business lines.

Frequently Asked Questions

Common questions about profit, margin, and markup calculations.

What is profit?

Profit is the financial gain you receive when revenue exceeds costs: Profit = Revenue − Cost. Profit can be expressed as a dollar amount (gross profit) or as a percentage (profit margin or markup).

What is the difference between profit margin and markup?

Margin is profit as a percentage of revenue: Margin = (Profit / Revenue) × 100. Markup is profit as a percentage of cost: Markup = (Profit / Cost) × 100. Buying for $60 and selling for $100 gives a $40 profit — a 40% margin but a 66.7% markup.

What is a good profit margin?

It depends on the industry. Software/SaaS often sees 60–80% margins. Retail typically runs 2–10% net margin. Restaurants average 3–9%. Professional services range 15–40%. Compare your margin to industry benchmarks rather than an absolute number.

How do I calculate selling price from margin?

Selling Price = Cost / (1 − Margin / 100). If your cost is $60 and you want a 40% margin: $60 / 0.60 = $100.

How do I calculate selling price from markup?

Selling Price = Cost × (1 + Markup / 100). A 50% markup on $60 cost gives $90 — which is actually a 33.3% margin, not 50%. This is one of the most common pricing mistakes in business.

Is margin the same as ROI?

No. Margin measures how much of each revenue dollar becomes profit. ROI measures return relative to total investment. Investing $10,000 and generating $15,000 revenue with $12,000 costs gives a 20% margin but a 30% ROI.

What is the difference between gross profit and net profit?

Gross profit is revenue minus direct cost of goods sold. Net profit subtracts all expenses including overhead, rent, salaries, and taxes. This calculator focuses on gross profit.