Gross Profit Margin Calculator
Compare gross profit, margin percentage, and markup from your cost and selling price. Gross margin is before expenses not included in your entered cost.
Enter cost and selling price to see your results
Track Margins Automatically
Eonebill helps freelancers track profitability across all clients.
Gross margin examples
$50 cost, $100 selling price
50% gross margin
$200 cost, $350 selling price
42.9% gross margin
$1000 cost, $2500 selling price
60% gross margin
Updated October 9, 2026
See gross margin and markup before you quote
A profit margin calculator shows how much of the selling price remains after the cost you entered. Use it as a line-item pricing check before preparing a client quote.
Gross margin is not take-home income
Gross profit = selling price - entered direct cost. Gross margin (%) = gross profit / selling price x 100. Use the same item, quantity, and currency for both inputs.
For a $100 sale with $30 of entered cost, gross profit is $70 and gross margin is 70%. That $70 still needs to cover expenses not included in your input; it is not necessarily net profit.
This two-input calculation does not separately account for overhead, payment fees, interest, taxes, or other operating expenses. A positive gross margin alone does not establish overall profitability.
The key insight: markup and profit margin are not the same. A 100% markup (doubling your cost) only yields a 50% margin. If you charge $100 for something that costs $50, you keep half—not all—of that revenue as profit.
To calculate a selling price from a chosen markup instead, use the markup calculator. This calculator checks an existing selling price.
Profit Margin Calculator FAQ
Gross margin (%) = (selling price - cost) / selling price x 100. Markup (%) = (selling price - cost) / cost x 100. With a $50 cost and $100 selling price, gross profit is $50, gross margin is 50%, and markup is 100%. The denominators are different.
It shows gross margin using only the cost and selling price you enter. It does not separately subtract overhead, payment fees, interest, taxes, or other expenses. Gross profit is not the same as take-home income or net profit.
Yes. If the selling price is below the entered cost, gross profit and gross margin are negative. A $100 cost and $80 selling price produce a $20 gross loss and a -25% margin. Equal cost and selling price produce a 0% gross margin.
With zero entered cost and a positive selling price, gross margin is 100%, but markup is not defined because its formula divides by cost. A zero selling price cannot produce a defined margin percentage, so the calculator requires a positive selling price.