Calculators · Free to use
Profit Margin & Markup Calculator
Margin and markup are not the same number. Enter your unit cost and selling price to see gross profit, margin % and markup % side by side.
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How to use the profit margin calculator
- 1Enter the cost to produce or buy one unit.
- 2Enter the price you sell it for.
- 3Read the gross profit, margin % and markup % instantly.
This tool runs in your browser. The text, files and values you enter are not uploaded to our server.
About the profit margin calculator
This profit margin calculator turns unit cost and selling price into gross profit, profit margin % and markup % at once. Founders constantly confuse margin and markup — margin is profit divided by price, markup is the same profit divided by cost — and pricing on the wrong one quietly erodes earnings. Use it to sanity-check pricing, set discounts that still clear margin targets, and model unit economics.
Frequently asked questions
Is this tool free?
Yes — completely free, no signup, no watermark and no limits. Startup OG funds the site through its directory and partner program, not paywalled tools.
What is the difference between margin and markup?
Same profit, different denominator. Margin = profit ÷ selling price. Markup = profit ÷ cost. A 50% markup is only a 33% margin, which is why pricing off the wrong one loses money.
What is a good profit margin for a startup?
It varies by model — software often runs 70–90% gross margin, physical products 20–50%. The number matters less than tracking it consistently and pricing above your fully-loaded cost.
How do I calculate margin from cost and price?
Gross profit = price − cost. Margin % = (gross profit ÷ price) × 100. Enter both numbers above and all three figures update instantly.