How to use the profit margin calculator
Calculate gross profit and profit margin from a selling price and product cost. Use the result to understand how much of each sale remains before other operating expenses. Enter your figures in the fields above and select Calculate. The result updates when you change an input.
Formula
Profit margin = (Selling price − Product cost) ÷ Selling price × 100
Example and interpretation
Profit margin is the share of selling-price revenue left after the cost entered. For example, a $100 selling price and $65 product cost leaves $35 gross profit, or a 35% gross margin.
Important assumptions
This calculator provides a general estimate for planning and educational purposes. It is not accounting, tax, legal or investment advice. Verify assumptions and provider fees before making financial decisions.