Content reviewed: 24 September 2026

Profit, margin and markup are related but different

Enter the cost of an item or service and the selling price. CalcNator calculates the gross profit, the profit margin as a percentage of revenue, and the markup as a percentage of cost.

Formulas

Profit = Revenue − Cost
Margin % = Profit ÷ Revenue × 100
Markup % = Profit ÷ Cost × 100

Worked example

If something costs 60 and sells for 100, the profit is 40. The margin is 40 ÷ 100 = 40%, while the markup is 40 ÷ 60 ≈ 66.67%. This is why using “margin” and “markup” as if they were the same can lead to pricing mistakes.

What this calculator does not represent

The calculation is based only on the cost and revenue values you enter. It does not automatically include overhead, tax, payment processing, shipping, returns or other business expenses unless you include them in your cost figure.

For more examples, read Profit Margin vs Markup.