DollarWise

Free Profit Margin Calculator

October 12, 2026 · 3 min read · By the DollarWise team

How it works

Enter what a product or job costs you and the revenue it brings in — this calculator shows your profit in dollars, your gross margin percentage, and your markup percentage, so you can see at a glance whether your pricing actually leaves money on the table.

Profit Margin Calculator

Profit, gross margin, and markup from two numbers — know what every sale really earns.

100% Free Forever No Sign-up No Credit Card Private — files never leave your browser Unlimited Use

1 Your numbers

Everything it costs to make or deliver one unit — materials, labor, shipping in.
The selling price, or the total revenue for the same units covered by the cost.

2 See your margins

🧮 Your profit breakdown

🎉 Free forever. No sign-up. No credit card. No limits.

This tool runs entirely in your browser — price as many products as you like, as often as you like.

How the math works

Profit is simply revenue − cost. Gross margin expresses that profit as a share of the money you took in: margin % = profit ÷ revenue × 100. Markup expresses the same profit as a share of what it cost you: markup % = profit ÷ cost × 100. Because the two percentages divide by different numbers, markup is always higher than margin on a profitable sale — a product that costs $60 and sells for $100 has a 40% margin but a 66.67% markup.

Everyday uses

  • Pricing products: check whether a handmade item, resale find, or digital product is priced high enough to be worth selling.
  • Freelance quotes: enter your time and expenses as cost and your quote as revenue to see the margin on a job before you send it.
  • Restaurant and retail menus: see which items actually carry the business and which are barely breaking even.
  • Wholesale decisions: compare suppliers by running the same selling price against different unit costs.

Frequently asked questions

Q: What is the difference between margin and markup? A: Margin divides profit by revenue (the selling price); markup divides profit by cost. A 50% markup on a $60 item gives a $90 price, but the margin on that sale is only 33.33%. Mixing the two up is one of the most common pricing mistakes.

Q: What is a healthy gross margin? A: It varies widely by industry — grocery stores often run on 1–3% net margins, while software and digital products can exceed 70% gross margin. Compare yours against businesses similar to yours, and make sure it covers your overheads, not just the unit cost.

Q: Can margin be over 100%? A: No. Margin is profit divided by revenue, and profit can never exceed revenue, so gross margin tops out at 100% (when cost is $0). Markup, which divides by cost, can go well above 100%.