Gross profit
See the amount left from each sale after subtracting the direct cost of the product or service.
Free business calculator
GP Calculator
Calculate gross profit, GP margin, markup and target selling price from your cost and revenue. Switch calculation modes to solve the exact figure you need.
Instant results
Margin and markup
Reverse calculations
Calculate gross profit your way
Find GP from cost and selling price, calculate a target selling price, or work backwards to find the maximum cost.
Enter your figures
Choose a calculation mode, select a currency and enter the values you know.
Your GP results
Enter your values and click Calculate GP to see gross profit, margin, markup and a clear calculation breakdown.
Gross profit result
Gross profit per item
$0.00
profit
Revenue remaining after direct cost.
GP margin
0.00%
Markup
0.00%
Cost price
$0.00
Selling price
$0.00
Gross profit margin
0.00%
Total revenue
$0.00
Total cost
$0.00
Total gross profit
$0.00
Cost percentage
0.00%
Calculation steps
About the tool
What is a GP calculator?
A GP calculator is a gross profit calculator that shows how much money remains after direct costs are deducted from sales revenue. It also calculates gross profit margin and markup so you can compare pricing and profitability more clearly.
GP margin
Measure gross profit as a percentage of selling price or revenue for easier comparison.
Markup percentage
Compare profit with cost to understand how much has been added above the original cost price.
How it works
How to use the GP calculator
Choose the calculation you need and the tool will solve the missing figures automatically.
Choose a mode
Calculate current profit, find a target selling price or work backwards to find the maximum cost.
Enter your figures
Add the known cost, selling price or target GP margin depending on the selected mode.
Add quantity
Use quantity to calculate total revenue, total cost and total gross profit.
Review your GP
Compare gross profit, GP margin, markup and the complete calculation breakdown.
Formulas
GP calculator formulas
Gross profit starts with the difference between revenue and direct cost. Margin and markup use that same profit figure but compare it with different values.
How the calculation works
Gross profit is the selling price minus the cost price. The GP margin then divides that profit by the selling price.
Markup divides the same profit by cost. Because margin is based on selling price and markup is based on cost, they are not interchangeable.
The target modes reverse the margin formula so you can calculate the required selling price or the maximum allowable cost.
Core GP formulas
Use cost and selling price from the same unit or accounting period.
Gross Profit = Selling Price − Cost
GP Margin = (Profit ÷ Selling Price) × 100
Markup = (Profit ÷ Cost) × 100
FAQ
Frequently asked questions
Common questions about gross profit, GP percentage, margin and markup.
GP usually means gross profit. It is the amount
remaining after direct cost is subtracted from
sales revenue or selling price.
Subtract cost from selling price to find gross
profit. Divide gross profit by selling price
and multiply the result by 100.
GP margin divides profit by selling price,
while markup divides profit by cost. They use
different bases, so the percentages differ.
Select Target Selling Price mode, enter your
cost and target GP margin, then calculate.
The tool reverses the margin formula.
Yes. Gross profit becomes negative when direct
cost is higher than the selling price or revenue.
No. Gross profit generally subtracts direct
cost from revenue. It does not automatically
deduct every operating expense, tax or interest.
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