Profit Margin Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Selling for $100 what costs $60 is a margin of 40%.
You keep $40 of every sale, a 66.7% markup on cost.
Gross margin
40%
Margin is profit as a share of the price; markup is the same profit as a share of the cost, so markup (66.7%) is always the bigger number.
Show the working
Margin = (100.00 − 60.00) ÷ 100.00 = 40%
Markup = (100.00 − 60.00) ÷ 60.00 = 66.67%
Price for each margin
| Margin | Price | Markup |
|---|---|---|
| 10% | 66.67 | 11.1% |
| 20% | 75.00 | 25% |
| 25% | 80.00 | 33.3% |
| 30% | 85.71 | 42.9% |
| 40% | 100.00 | 66.7% |
| 50% | 120.00 | 100% |
| 60% | 150.00 | 150% |
| 70% | 200.00 | 233.3% |
Questions people ask
What is profit margin?
Profit as a share of the selling price: (price − cost) ÷ price. A $100 item that costs $60 has a 40% margin.
Margin or markup?
Markup is profit as a share of the cost: (price − cost) ÷ cost. The same $40 profit is a 40% margin but a 66.7% markup.
What is a good margin?
It depends on the trade: grocery 20% to 30%, clothing retail 50% or more, software 70% to 90%. Compare with businesses like yours.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobGross margin only; overheads and tax come off later.Report an issue