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Kordu Tools
Finance Runs in browser Updated 08 Apr 2026

Profit Margin Calculator

Calculate profit margin, markup, and profit amount from cost and selling price.

Enter values

Profit+50.00
Profit margin50.00%
Markup100.00%
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How to use Profit Margin Calculator

  1. Enter the cost price

    Type the amount you paid or the cost to produce the item — before any markup.

  2. Enter the selling price

    Type the price you charge customers for the item.

  3. Read the results

    The profit amount, gross profit margin percentage, and markup percentage are calculated instantly.

Profit Margin Calculator FAQ

What is the difference between profit margin and markup?
Profit margin expresses profit as a percentage of revenue (selling price). Markup expresses profit as a percentage of cost. A £50 item sold for £100 has a 50% profit margin but a 100% markup. Both describe the same profit, but from different bases.

How is gross profit margin calculated?
Gross profit margin = (selling price − cost) ÷ selling price × 100. It represents how much of each pound of revenue is profit after covering the direct cost of the goods.

How is markup calculated?
Markup = (selling price − cost) ÷ cost × 100. It shows how much you have added on top of the cost price. A 100% markup doubles the cost.

Why is my margin always lower than my markup?
Margin is always lower than markup for the same product because they use different denominators. Margin divides by the (larger) selling price; markup divides by the (smaller) cost price. They converge as margin approaches 0% and diverge as margin approaches 100%.

What if my selling price is lower than my cost?
The calculator handles losses — it shows a negative profit and negative margin/markup percentages, indicating you are selling below cost.

Is VAT or sales tax included?
No. Enter your prices ex-VAT/tax for a clean margin calculation. If your selling price includes tax, use the Sales Tax Calculator first to extract the pre-tax price.

Is my data sent anywhere?
No. All calculations happen in your browser. Nothing is uploaded or stored.

Background

The Kordu Profit Margin Calculator shows you profit amount, gross profit margin percentage, and markup percentage from two inputs: cost price and selling price.

Profit margin and markup are related but distinct. Profit margin (or gross margin) expresses profit as a percentage of revenue — profit ÷ selling price × 100. A £50 cost item sold for £100 has a 50% profit margin. Markup expresses profit as a percentage of cost — profit ÷ cost price × 100. The same item has a 100% markup. Retailers typically talk in margin; manufacturers often talk in markup.

Use this tool to verify pricing meets your margin targets, compare margins across product lines, and quickly convert between margin and markup figures.

All calculations run client-side in your browser. Nothing is uploaded or stored.

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