Calculate profit margin, gross profit, and markup with Nimzoa's free online Profit Margin Calculator. Enter your cost and selling price to see how much profit you make, or work backward from a target margin or markup to find the selling price you need. Switch between three calculation modes, choose a currency display, and copy or share your results.
01 / CALCULATION MODE
02 / ENTER THE DETAILS
Currency changes the display only; no exchange rates or conversions are used. Margin is profit ÷ selling price; markup is profit ÷ cost price.
03 / YOUR RESULT
Formula
Gross profit = $150.00 − $100.00 = $50.00. Margin = profit ÷ selling price; markup = profit ÷ cost price.
Your prices and calculations stay in your browser and are not uploaded or stored.
How it works
Choose the supported file from your device.
Use the available settings for the result you need.
Save the completed file directly to your device.
Choose one of three modes: Profit from Prices, Price from Target Margin, or Price from Target Markup. Enter the requested cost, selling price, or target percentage. Review the calculated gross profit, margin, markup, or required selling price. You can change the currency display, copy or share the result, or reset the calculator. Currency selection changes the display symbol only and does not convert exchange rates.
Calculate gross profit, profit margin, and markup in seconds. Work backward from a target margin or markup to determine your selling price. Compare margin and markup without confusing their different formulas. Use three calculation modes, currency display options, and copy, share, or reset controls. No account or software installation required.
Your calculation inputs are processed locally in your browser and are not uploaded to Nimzoa's servers for calculation. The tool does not require an account. General website analytics and other site data practices are separate from calculator processing.
Subtract the cost price from the selling price to find gross profit. Divide gross profit by the selling price and multiply by 100. For example, a product costing $100 and selling for $150 has a gross profit of $50 and a profit margin of approximately 33.33%.
Profit margin measures gross profit as a percentage of selling price, while markup measures gross profit as a percentage of cost. If a product costs $100 and sells for $150, its profit margin is approximately 33.33%, but its markup is 50%.
Use the formula Selling Price = Cost ÷ (1 − Target Margin ÷ 100). For example, a $100 cost with a 40% target gross margin requires a selling price of approximately $166.67. You can calculate this using the Price from Target Margin mode.
Use the formula Selling Price = Cost × (1 + Markup ÷ 100). For example, a $100 cost with a 40% markup gives a selling price of $140. Use the Price from Target Markup mode to calculate this automatically.
Gross Profit Margin (%) = (Selling Price − Cost Price) ÷ Selling Price × 100. The calculation uses the cost entered into the tool, so include the relevant direct costs when estimating a product or service's gross margin.
Markup (%) = (Selling Price − Cost Price) ÷ Cost Price × 100. Markup measures profit relative to cost, not selling price. A product costing $80 and selling for $100 has a 25% markup.
No. If a product costs $100, a 30% markup produces a $130 selling price and approximately a 23.08% profit margin. To achieve a 30% gross profit margin on a $100 cost, the required selling price is approximately $142.86.
Yes. Select Profit from Prices and enter your cost price and selling price. Nimzoa displays gross profit, profit margin, and markup together, allowing you to compare the amount of profit with both percentage calculations.
The calculator uses the cost and selling price values you enter. It does not have separate fields for shipping, advertising, transaction fees, taxes, or overhead. Account for relevant direct costs in your entered cost where appropriate, and calculate net profit separately.
Yes. You can select a currency display for your results. This changes the displayed currency symbol only; it does not convert amounts or apply exchange rates. Enter cost and selling price in the same currency.
Yes. Nimzoa's Profit Margin Calculator is free to use without creating an account or installing software. You can calculate profit margin, markup, and target selling prices directly in your browser.
No. Your calculator inputs are processed locally in your browser and are not uploaded to Nimzoa's servers for calculation. General website analytics and other site data practices are separate from calculator processing.
Knowing how much profit you make on a product or service is important when setting prices, comparing costs, and evaluating sales.
Nimzoa's free Profit Margin Calculator helps you calculate gross profit, profit margin, and markup using your cost price and selling price. It can also work backward to calculate the selling price needed to achieve a target profit margin or markup.
You can use the calculator without creating an account or installing software.
Whether you sell physical products, provide services, manage a small business, or simply want to check your pricing, this tool gives you a straightforward way to understand the relationship between cost, selling price, and gross profit.
Nimzoa provides three calculation modes.
Use this mode when you already know your cost price and selling price.
Select Profit from Prices.
Enter your cost price.
Enter your selling price.
Review your gross profit, profit margin, and markup.
For example, if a product costs $100 and sells for $150, the results are:
Result | Amount |
|---|---|
Cost price | $100 |
Selling price | $150 |
Gross profit | $50 |
Profit margin | 33.33% |
Markup | 50% |
The profit margin and markup are different because they use different values as their denominators.
Use this mode when you know your cost and the profit margin you want to achieve.
Select Price from Target Margin.
Enter the cost price.
Enter your desired profit margin percentage.
Review the required selling price.
For example, if your cost is $100 and you want a 40% gross profit margin:
Required selling price = $166.67 (approximately)
That selling price gives you approximately $66.67 in gross profit.
This mode is useful when a business has a target gross margin for its products or services.
Use this mode when you want to add a specific markup percentage to your cost.
Select Price from Target Markup.
Enter your cost price.
Enter the desired markup percentage.
Review the required selling price.
For example, if your cost is $100 and you want a 40% markup:
Required selling price = $140
The resulting gross profit is $40, and the gross profit margin is approximately 28.57%.
A 40% markup is not the same as a 40% margin.
Profit margin measures the percentage of selling revenue remaining as profit after subtracting the costs included in the calculation.
For this calculator, gross profit margin is based on the cost price you enter and the selling price.
The formula is:
Profit Margin (%) = (Selling Price − Cost Price) ÷ Selling Price × 100
For example:
Cost price: $80
Selling price: $100
Gross profit: $20
Profit margin: 20%
The margin is 20% because $20 represents 20% of the $100 selling price.
Profit margin is useful for understanding how much of each sale remains after the specified cost.
Gross profit is the difference between the selling price and the cost entered into the calculator.
Gross Profit = Selling Price − Cost Price
For example, if a product costs $120 and sells for $180:
Gross Profit = $180 − $120 = $60
This is a dollar amount, not a percentage.
Gross profit can help you compare the contribution of different products or services before considering other expenses.
For a meaningful business comparison, your cost figure should consistently include the relevant direct costs of the item or service.
Markup is the percentage added to the cost price to determine the selling price.
The formula is:
Markup (%) = (Selling Price − Cost Price) ÷ Cost Price × 100
For example:
Cost price: $100
Selling price: $125
Gross profit: $25
Markup: 25%
Markup is measured against cost, while margin is measured against selling price.
This difference is especially important when setting prices.
Profit margin and markup both describe profit, but they measure it differently.
Feature | Profit Margin | Markup |
|---|---|---|
Based on | Selling price | Cost price |
Formula | Profit ÷ Selling price × 100 | Profit ÷ Cost price × 100 |
With $100 cost and $150 selling price | 33.33% | 50% |
Common use | Measuring profitability relative to revenue | Setting a selling price above cost |
Consider a product that costs $100.
If you add a 30% markup, the selling price becomes $130.
However, the gross profit margin is approximately 23.08%, not 30%.
To achieve a 30% gross profit margin on a $100 cost, the required selling price is approximately $142.86.
Confusing these percentages can lead to prices that produce less margin than intended.
To calculate gross profit margin manually, use:
Margin (%) = (Revenue − Cost) ÷ Revenue × 100
When evaluating a single product, revenue is its selling price.
Suppose you buy a product for $250 and sell it for $400.
Step 1: Calculate gross profit
$400 − $250 = $150
Step 2: Divide profit by selling price
$150 ÷ $400 = 0.375
Step 3: Convert to a percentage
0.375 × 100 = 37.5%
Your gross profit margin is 37.5%.
The markup on the same sale is 60%.
If you know your cost and desired gross profit margin, you can calculate the selling price.
The formula is:
Selling Price = Cost Price ÷ (1 − Target Margin ÷ 100)
For example, suppose your cost is $60, and you want a 25% gross profit margin.
Selling Price = $60 ÷ (1 − 0.25)
Selling Price = $60 ÷ 0.75
Required Selling Price = $80
At an $80 selling price, gross profit is $20, which is 25% of revenue.
A positive cost with a target margin of 100% or more does not produce a finite selling price under this formula.
To calculate selling price using a target markup, use:
Selling Price = Cost Price × (1 + Markup ÷ 100)
For example, if the cost is $60 and the desired markup is 25%:
Selling Price = $60 × 1.25
Required Selling Price = $75
The gross profit is $15.
The gross profit margin is 20%, even though the markup is 25%.
Use Nimzoa's Price from Target Markup mode to calculate this automatically.
If you know a profit margin and want to express it as a markup, use:
Markup (%) = Margin (%) ÷ (100 − Margin (%)) × 100
For example, a 20% margin corresponds to a 25% markup.
To convert markup to margin, use:
Margin (%) = Markup (%) ÷ (100 + Markup (%)) × 100
For example, a 50% markup corresponds to approximately a 33.33% margin.
Gross Margin | Equivalent Markup |
|---|---|
10% | 11.11% |
20% | 25% |
25% | 33.33% |
30% | 42.86% |
40% | 66.67% |
50% | 100% |
These values demonstrate why markup and margin should not be used interchangeably.
The term profit percentage can be ambiguous because people may mean profit margin or markup.
If you want profit as a percentage of revenue, calculate profit margin.
If you want profit as a percentage of cost, calculate markup.
For a product costing $200 and selling for $300:
Gross profit: $100
Profit margin: 33.33%
Markup: 50%
Nimzoa shows both percentages in its Profit from Prices mode, making the distinction easier to understand.
A profit margin calculator can help businesses review the gross profitability of individual products.
Suppose you sell a product for $75 and its relevant direct cost is $45.
Gross Profit = $75 − $45 = $30
Profit Margin = $30 ÷ $75 × 100 = 40%
The gross margin is 40%.
If your business also pays shipping, transaction fees, or other expenses that are not included in the entered cost, the remaining profit after those expenses will be lower.
For consistent comparisons, decide which direct costs belong in the cost figure and apply that approach across products.
Service businesses can also use gross margin calculations.
For example, suppose a service is sold for $500, and the directly attributable delivery cost is $300.
Gross Profit = $500 − $300 = $200
Gross Profit Margin = $200 ÷ $500 × 100 = 40%
This can help compare the pricing and direct costs of different services.
However, a service's final net profit may be lower after overhead, administration, taxes, and other business expenses.
Gross profit margin and net profit margin measure different things.
Gross profit margin focuses on revenue after the relevant direct costs of providing a product or service.
Net profit margin considers additional business expenses, which may include operating expenses, interest, and taxes.
Nimzoa's Profit Margin Calculator is designed for gross profit, gross margin, and markup calculations based on the values entered.
It does not provide separate fields for shipping, advertising, marketplace fees, taxes, overhead, or other expense categories.
If you need a full net-profit calculation, those additional expenses must be accounted for separately.
There is no single ideal profit margin for every business.
Appropriate margins depend on factors such as:
Industry and business model
Product or service costs
Competition and customer demand
Operating expenses
Sales volume
Pricing strategy
Business risk
A business selling high-volume, low-margin products may operate differently from a specialist service provider.
Instead of assuming that one percentage is always good, compare your margin with your own costs, pricing goals, and relevant industry benchmarks.
A 30% markup does not produce a 30% profit margin.
Use the correct calculation mode for your pricing goal.
Leaving direct costs out of the cost figure can make the calculated gross profit appear higher than it actually is.
Markup uses cost as the denominator.
Profit margin uses selling price as the denominator.
Gross profit does not automatically account for all operating expenses or taxes.
A product with a high margin but very few sales may generate less total profit than a lower-margin product sold in large quantities.
Margins are useful, but they are only one part of business performance.
Review the difference between product costs and selling prices.
Estimate gross profit and evaluate product pricing. Remember to account separately for relevant selling expenses that are not included in the entered cost.
Compare service fees with directly attributable delivery costs.
Evaluate pricing decisions and check whether a target gross margin is achievable.
Understand the mathematical difference between gross profit, margin, and markup using practical examples.
Calculate selling prices from a desired margin or markup percentage.
Nimzoa provides currency display options so your results can be presented using a selected currency symbol.
Changing the currency display does not convert amounts between currencies.
For example, changing the symbol from dollars to euros does not apply an exchange rate.
Enter the cost and selling price in the same currency, and use the currency selector only to display the appropriate symbol.
Nimzoa combines three useful calculations in one straightforward tool:
Calculate gross profit, margin, and markup from prices.
Calculate a selling price from a target margin.
Calculate a selling price from a target markup.
Display results using a selected currency symbol.
Copy or share calculation results.
Reset the calculator to start a new calculation.
Use the tool without an account or installation.
The calculator processes the entered values locally in your browser.
It is designed for quick pricing calculations rather than comprehensive accounting or financial forecasting.
Enter your cost and selling price into Nimzoa's Profit Margin Calculator above to see your gross profit, profit margin, and markup.
If you already have a target margin or markup in mind, switch modes to calculate the selling price required.
Use the results to support your pricing decisions, and remember to consider additional expenses when evaluating the overall profitability of your business.