Profit Calculator
Profit formulas
- Profit = Price − Cost
- Gross Profit = Price × (Margin % ÷ 100)
- Cost = Price − Gross Profit
- Markup % = Gross Profit ÷ Cost × 100
Tip: Margin is the profit as a percent of the selling price. Markup is profit as a percent of cost.
Profit Calculator — what it does and why it’s useful
This Profit Calculator helps you turn two numbers—selling price (revenue) and gross margin %—into the three answers you care about: gross profit, cost, and markup %. It’s built for quick quoting, price checks, and sanity-checking margins before you send a proposal or publish a price.
Whether you sell apparel, print, signage, or services, consistent profitability comes from knowing the relationship between price, margin, cost, and markup. This tool keeps that math simple and transparent.
How to use the Profit Calculator
- Enter Revenue/Price – the price you charge your customer.
- Enter Gross Margin % – your target margin on the sale.
- Click Calculate to see:
- Gross Profit – dollars you keep before overhead.
- Cost – what you can spend to produce/deliver and still hit the margin.
- Markup % – profit as a percent of cost (handy for purchasing teams).
- Use Copy answer to paste results into an email, ticket, or CRM note.
The formulas (plain-English and exact math)
- Gross Profit = Price × (Margin ÷ 100)
- Cost = Price − Profit
- Markup % = Profit ÷ Cost × 100
Margin vs. Markup: Margin is profit as a percent of price. Markup is profit as a percent of cost. A 50% margin equals a 100% markup.
Quick example
- Price: $550
- Margin: 50%
- Profit: $550 × 0.50 = $275
- Cost: $550 − $275 = $275
- Markup %: $275 ÷ $275 × 100 = 100%
Now you know the maximum cost you can carry while still hitting a 50% margin.
Practical tips
- Start with margin (not markup) if you’re managing overall profitability—margin aligns to your P&L.
- Include all direct costs in the cost number you compare to the calculator’s “Cost” (materials, labor, decorating, packaging, inbound freight).
- Add overhead and risk via margin, not a random surcharge—your target margin should cover reprints, revisions, and admin time.
- Round intentionally. Customers see the final price, not the math; round in your favor but keep breakpoints consistent across tiers.
- Document your assumptions. When you paste the results, note what’s included (e.g., setup fees, standard turnaround, tax/shipping extra).
Who benefits
- Sales & CS can quote confidently and keep margins in range.
- Buyers can reverse-engineer allowable costs from a target margin.
- Owners & ops get consistent, repeatable pricing logic across the team.
The Profit Calculator is designed to be fast, clear, and trustworthy. Use it before you promise a price, and you’ll spend less time reworking quotes—and more time closing profitable orders.
