Calculators
Profit Margin Calculator
Enter your revenue and cost to understand your gross profit, margin and markup.
Enter the revenue and the direct cost. Gross profit is the difference between the two.
Gross profit margin
40.0%
- Gross profit
- £400.00
- Profit margin
- 40.0%
- Markup
- 66.7%
Margin vs markup
Gross profit is your revenue minus the direct cost of the goods or service. Margin and markup both describe that profit, but against different figures:
- Gross profit = revenue − cost.
- Profit margin = gross profit ÷ revenue × 100.
- Markup = gross profit ÷ cost × 100.
For example, selling for £1,000 something that costs £600 gives £400 gross profit — a 40% margin, but a 66.7% markup. They are easy to confuse, which is why it helps to be clear which one you are quoting.
This calculator looks at gross margins only. It does not account for overheads, tax or other operating costs.
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