Money Magic

Profit Margin Calculator

Find your gross and net profit, margin, markup and break-even point from price, cost and expenses.

Gross profit vs net profit

Gross profit is revenue minus the direct cost of what you sold. Net profit goes one step further and subtracts your other expenses such as rent, marketing and salaries. This calculator keeps the two clearly separate.

Margin vs markup

Gross margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost. They describe the same profit from two angles, so a 40% margin is not a 40% markup.

Frequently asked questions

What is the difference between margin and markup?

A product that costs 150 and sells for 250 has a 40% margin but a 66.7% markup. Margin is measured on the selling price, markup on the cost.

What are break-even units?

The number of units you must sell to cover your other expenses: expenses ÷ profit per unit, rounded up.

Does the result include tax?

No. Net profit here is after the expenses you enter, but before income tax.

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