XtraCalc by XtraKit
Profit Margin Calculator
Know what you keep from each sale. Free to use, with no account needed.
Your result
Gross profit margin
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Enter your numbers and select Calculate, or try the example.
How to use this calculator
- 1
Enter the cost of one item, including the per-item costs you want to cover.
- 2
Enter the selling price using the same currency and tax basis.
- 3
Calculate your margin, then compare it with the profit and markup breakdown.
The formula, without the guesswork.
Margin = (selling price − cost) ÷ selling price × 100
A worked example
An item that costs 80 and sells for 100 earns 20 in gross profit: a 20% margin and a 25% markup. The two percentages use different denominators.
Shopify: margin and markup explainedA few things worth knowing
What is the difference between margin and markup?
Margin divides profit by selling price. Markup divides profit by cost. A cost of 80 and price of 100 give a 20% margin and a 25% markup.
Is this net profit?
This is a gross profit calculation using the cost you enter. Overheads, taxes and fees are not automatically deducted. Account for those separately before interpreting the result as take-home profit.
Can the result be negative?
Yes. A selling price below cost produces a negative margin and a loss per item. A zero cost is allowed, but markup on zero cost is undefined. Selling price must be greater than zero.