Profit Margin Calculator
Calculate gross and net profit margin based on cost and revenue
Profit Margin vs. Markup: Know the Difference
In business, knowing exactly how much you earn on every sale is critical. While Profit Margin and Markup use the same variables (Cost and Revenue), they provide different insights into your financial performance.
What is Gross Profit Margin?
Profit margin shows the percentage of revenue that remains after pay the cost of goods sold. It’s the "investor's view": "Out of every $100 I collect, how much is actually profit?".
What is Markup?
Markup shows how much the selling price is above the cost of the product. It’s the "pricing view": "How much should I add to the cost to reach the final price?".
Real-World Example
If you buy an item for $70 and sell it for $100:
- Your profit is $30.
- Your Profit Margin is 30% ($30 out of $100).
- Your Markup is 42.8% ($30 added to $70).
Financial Disclaimer: This calculator is for educational and informational purposes only. Pricing decisions should account for taxes, shipping, fixed overhead, and other complex variables. Consult with a professional accountant before making strategic business moves.
Privacy Focused
Financial data is confidential. Octovelo never transmits your cost or revenue numbers to our servers. All logic is executed on your device using local JavaScript.