Profit margin by product calculator
Calculate a product's gross margin, margin rate and markup rate from its selling price and purchase cost, with a projection over a quantity sold. No data is sent to a server.
How it works
To set a profitable selling price or check the profitability of a product already in your catalog, you need to compare its purchase cost (or cost price) with its selling price. This tool calculates the unit gross margin, the margin rate and the markup rate, then projects these figures over the quantity sold to estimate the total margin generated.
What is the difference between margin rate and markup rate?
The margin rate expresses the margin relative to the selling price (margin / selling price), and is the most common indicator for managing commercial profitability. The markup rate (sometimes called the multiplier coefficient as a percentage) expresses the margin relative to the purchase cost (margin / purchase cost): it is often used on the purchasing or supplier side. The two rates always differ for the same product, so don't confuse them.
Does this calculation replace a real profitability analysis?
No, it is a simplified estimate based only on the purchase cost and selling price you enter: it does not account for fixed costs, logistics, taxes or additional fees. For a full profitability analysis or a strategic pricing decision, rely on the advice of an accountant or financial advisor.
The calculation runs entirely in your browser: none of the amounts you enter is sent to a server.