How to use this calculator
Profit margin compares the gross profit amount with the selling price.
The method
Enter your values in the labeled fields and choose Calculate. The result panel shows the answer and supporting values when useful.
Cost: 80, Selling price: 120
Select Calculate to evaluate these example values.
Scope and limitations
Selling price cannot be zero. This is a simplified gross-margin calculation, not net business profit.
Common questions
Can I use different units?
Use consistent units unless this page is a unit converter. The result follows the units implied by the inputs.
Are results exact?
Displayed values may be rounded. Keep extra precision for important follow-up calculations.
Methods & verification
Formulas use standard mathematical definitions and fixed unit factors where applicable. See our methodology for numerical conventions, rounding, privacy, and limitations.