Profit Calculator

How to calculate profit

Gross profit is simply your revenue minus your cost. This calculator takes the selling price (revenue) and the cost of a product or sale and returns the gross profit, the profit margin, and the markup — three numbers every business owner should know. Enter your figures above and they update instantly.

Profit, margin, and markup

• Gross profit = revenue − cost. The actual money left over.
• Profit margin = profit ÷ revenue × 100. The share of each sale you keep.
• Markup = profit ÷ cost × 100. How much you added on top of cost.

Margin and markup describe the same profit from different angles, and margin is always the smaller number. Tracking margin is the best way to compare profitability across products with different costs.

Gross vs. net profit

This tool calculates gross profit — revenue minus the direct cost of the product. Your net profit is what remains after all other expenses: rent, salaries, utilities, marketing, and taxes. A healthy gross margin is essential, but always check that it's large enough to cover your overhead and still leave a net profit.

FAQ

What's a good profit margin?

It varies widely by industry — retail margins are often thin, while software and services can be high. Compare against typical margins in your field rather than a universal target.

Can margin be over 100%?

No. Margin is a share of revenue, so it maxes out below 100% (you can't keep more than you charged). Markup, however, can exceed 100% when the price is more than double the cost.

Does this account for discounts?

Enter your actual selling price after any discount as the revenue, and the profit will reflect the real margin you earn on the discounted sale.