Find out exactly how much of every sale you actually keep — and whether your pricing is healthy enough to grow on. Update it any time your costs or prices change.
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Gross profit per unit
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Gross margin
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Markup on cost
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Total profit at 500 units sold
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Rule of thumb: —
Profit margin and markup are easy to confuse but answer different questions. Margin tells you what percentage of your selling price is actual profit. Markup tells you how much you added on top of your cost. This calculator uses your revenue and cost of goods sold to show both, plus your total profit across a batch of sales.
What's the difference between margin and markup? Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. The same dollar profit always produces a lower margin percentage than markup percentage.
What counts as cost of goods sold? Direct costs tied to producing or acquiring what you sell — materials, manufacturing, packaging, and direct labor. It excludes overhead like rent or marketing.
What's a healthy profit margin? It varies by industry, but many product businesses aim for 40-60% gross margin, while service businesses often run higher. Compare against your industry rather than a single universal number.
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