FREE TOOL · PRICING
Profit Margin Calculator
Turn cost and price into gross margin, markup, and real profit per unit. Stop confusing margin with markup and pricing yourself into a hole.
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Gross Margin
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Markup
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Profit / Unit
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Total Profit
Margin is profit as a share of your price; markup is profit as a share of your cost. They are not the same number, and confusing them quietly wrecks pricing decisions.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of your selling price; markup is profit as a share of your cost. A 50% markup is only a 33% margin.
How do you calculate gross margin?
Subtract cost from price, divide by price, and multiply by 100. A $100 item costing $40 has a 60% gross margin.
Why does confusing margin and markup matter?
Because pricing off the wrong number quietly erodes your profit on every single sale.
Margins too thin to grow on?
DigiJaws builds growth systems engineered around your unit economics, not vanity revenue.
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