Business and freelance

Profit Margin Calculator

Understand the difference between margin and markup, compare revenue with cost, or find the price needed to achieve a desired gross margin.

Last reviewed: August 23, 2026 · Free to use · No registration

Interactive tool

Enter your details

Your estimate

Results

Enter your details and select Calculate to see a clear result breakdown.

Before using the estimate

Important considerations

  • Gross profit is not the same as net profit.
  • Include all relevant direct costs for a meaningful result.
  • A desired margin of 100% is mathematically impossible at a finite selling price.
Common questions

Profit Margin Calculator FAQs

What is the difference between margin and markup?

Margin divides profit by revenue; markup divides profit by cost.

Can margin be negative?

Yes, when costs exceed revenue. The calculator allows this result while rejecting invalid non-positive revenue.

Does the suggested price include VAT?

No. It is based only on unit cost and desired margin; add applicable taxes separately.