Free calculator · no account required
Free Profit Margin Calculator
Calculate gross profit, profit margin, and markup to price your products more confidently.
Required selling price is available for targets below 100%.
Your estimate
Profit per unit
$22.00
Gross margin
44.0%
Markup
78.6%
Total revenue
$5,000.00
Total gross profit
$2,200.00
Price at target margin
$46.67
Selling price breakdown
Gross profit is before overhead and tax
Take the next step
Know your margins. Grow your business.
Track sales, revenue, and business expenses with GridHub tools.
Your draft stays in this tab for 30 minutes · Check tool access
How this calculator works
Gross margin is gross profit divided by net selling price. Markup is gross profit divided by unit cost. These are different ratios; gross margin is not net profit because overhead, tax, and other costs may be excluded. Enter estimates that match your situation. All amounts stay in the currency selected above, and calculations update locally as you edit.
Example
Use the starting values as a simple example, then replace them with your own assumptions. The results are illustrative and may differ from actual outcomes.
Limitations
This free tool provides estimates for planning and education. It does not account for every lender, tax jurisdiction, contract, fee, or personal circumstance. Verify important decisions independently.
Frequently asked questions
How is margin different from markup?
Margin divides profit by selling price. Markup divides profit by cost. The percentages differ even when based on the same sale.
Is gross margin net profit?
No. Gross profit may not subtract overhead, payroll, tax, payment processing, or other business expenses.
Can I calculate a target price?
Yes. Enter the desired margin. For a positive cost, targets must remain below 100%.
Related free calculators
Planning estimate only. Confirm financial, investment, and tax decisions with qualified professionals where appropriate.