Profit Margin Calculator
Calculate gross profit margin, markup percentage, and selling price from cost. Includes multi-product tables, break-even analysis, and margin health scoring.
Margin Details
Choose a mode, adjust values below
Calculation Mode
Mode: Selling Price → Margin
Gross Margin
40.0%
of revenue
Gross Profit
$40.00
revenue − cost
Markup %
66.67%
above cost
Selling Price
$100.00
Cost (COGS)
$60.00
Cost %
60.0%
Profit per Sale
$40.00
Revenue Breakdown
$100.00$40.00
Profit · 40.0%
$60.00
Cost · 60.0%
$100.00
Revenue · 100.0%
Margin Health
Good💡 Healthy margins. Typical for SaaS, professional services, and branded products.
Break-Even Analysis
Find the minimum units to cover all costs
Break-Even Units
125
units to cover costs
Break-Even Revenue
$12.5K
total revenue needed
Contribution Margin
$40.00
per unit
Profit @ 200 units
$3,000.00
15.0% margin
Cost Structure @ 200 units
Multi-Product Margin Table
Calculate margins across your entire product lineup
| Product / Service | Cost $ | Revenue $ | Profit $ | Margin % | Markup % | |
|---|---|---|---|---|---|---|
| $34.00 | 43.04% | 75.56% | ||||
| $79.00 | 39.7% | 65.83% | ||||
| $120.00 | 80.0% | 400.0% | ||||
| Totals / Averages | $195.00 | $428.00 | $233.00 | 54.44% | 119.49% |
Margin Composition
Margin
40.0%
Profit
40.0%
Cost
60.0%
Revenue (100%)
Gross Margin
40.0%
Profit: $40.00 · Markup: 66.67%
Margin vs Markup
Gross Margin
Profit ÷ Revenue × 100% of selling price that is profit
Markup
Profit ÷ Cost × 100% above cost added to price
⚠️ A 50% markup ≠ 50% margin. Markup is always higher than margin for the same profit.
Create invoices & quotations
Apply your pricing directly to professional invoices, quotations & payslips.
Try TradingForms Free →Understanding profit margins
Gross Margin measures how much revenue remains after subtracting the cost of goods sold (COGS). It's expressed as a percentage of revenue and tells you how efficiently you turn sales into profit.
Markup is the percentage added on top of cost to arrive at a selling price. While related, markup and margin are calculated differently and are often confused — a common and costly mistake in pricing.
Gross Margin
(Revenue − Cost) ÷ Revenue × 100Markup %
(Revenue − Cost) ÷ Cost × 100Selling Price (from margin)
Cost ÷ (1 − Margin%/100)Selling Price (from markup)
Cost × (1 + Markup%/100)What's a good margin?
Maximize your profitability
Know your break-even first
Before setting prices, calculate exactly how many units you need to sell to cover all fixed and variable costs.
Margin ≠ Markup
A 50% markup only gives you a 33% margin. Always convert between them correctly when pricing or reporting.
Price for value, not cost
Cost-plus pricing caps your upside. Value-based pricing lets you capture more margin without increasing costs.
Track per-product margins
Your blended margin hides losers. Use the multi-item table above to find which products drag your overall margin down.
Done calculating?
Now turn your pricing into professional invoices.
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