Tool
Profit Margin Calculator
Calculate profit margin from cost and selling price.
Finance / Percentage Calculators
What this tool does
Estimate gross margin and profit dollars from cost and selling price.
How to use
- Enter product cost.
- Enter selling price.
- View margin percentage and profit dollars.
Formula
margin % = (price − cost) ÷ price × 100
Examples
Cost $40, price $100
Input: cost=40, price=100
Output: 60% margin, $60 profit
(100−40)÷100 = 60%.
Common use cases
- Price products for target margin
- Evaluate supplier quotes
- Compare SKU profitability
FAQ
Is this gross or net margin?
Gross margin based on cost and price only; excludes overhead.
What if price equals cost?
Margin is 0% with zero profit.
Can selling price be below cost?
Yes, but margin will be negative indicating a loss.
Explore related workflows
Last reviewed: 2026-05-23