Last updated: August 2026
Understand Your Unit Economics
Before launching a new product or running a sale, it is critical to understand exactly how much gross profit you will make per unit sold. Enter your cost and selling price to instantly see your exact profit.
A Worked Example
With a cost of $100 and revenue of $150: gross profit is $150 − $100 = $50. Margin is $50 ÷ $150 = 33.33% (profit as a share of what you sold it for), while markup is $50 ÷ $100 = 50% (profit as a share of what it cost you).
Stop Guessing Your Margins
Many business owners confuse Margin and Markup, which can lead to disastrous pricing decisions. Our tool calculates the gross profit, the margin %, and the markup % all at the same time so you can price your products with confidence.
Frequently Asked Questions
Gross Profit is the absolute dollar amount you make on a sale after subtracting the cost of the goods sold (Revenue - Cost).
No. Gross profit only accounts for the direct cost of the item. Net profit also subtracts operating expenses like rent, marketing, and payroll.
While profit is the raw dollar amount, margin and markup are the percentages that dictate your pricing strategy. Showing all three gives you a complete picture of your unit economics.
It depends on your industry's convention. Retail often prices using markup (based on cost), while margin (based on revenue) is more common in financial reporting since it shows what share of each sales dollar is profit.
Markup divides profit by the smaller number (cost), while margin divides the same profit by the larger number (revenue). For any profitable sale, markup percentage will always be higher than margin percentage.
Yes. Enter what you paid as the cost and what you sold for as the revenue — the math works the same for stocks or crypto as it does for products, though it won't factor in trading fees or taxes.
No. This is a straightforward Revenue minus Cost calculation. Factor in transaction fees, shipping, or taxes yourself by adjusting your cost or revenue figures before entering them.