Profit Calculator
Enter your cost and selling price to calculate profit, profit margin and profit percentage.
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How to Calculate Profit
Profit is the money left after subtracting the cost from the selling price. It is the most basic measure of whether a sale makes money.
Profit Formula
Profit = Selling Price − Cost Price
Profit Margin = Profit ÷ Selling Price × 100%
Profit Percentage (Markup) = Profit ÷ Cost Price × 100%
Example
You buy a product for $50 and sell it for $100:
- Profit = $100 − $50 = $50
- Profit Margin = $50 ÷ $100 = 50%
- Markup = $50 ÷ $50 = 100%
Frequently Asked Questions
Profit margin is profit divided by the selling price, while markup is profit divided by the cost price. A $50 profit on a $100 sale is a 50% margin but a 100% markup.
Subtract the cost price from the selling price: Profit = Selling Price − Cost Price.
It varies by industry. Retail typically runs 20-50% gross margin, restaurants 60-70%, and software often exceeds 80%.
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