Calculate gross profit, margin, and markup in USD for a business in United States.
Direct answer
Gross profit equals selling price minus cost. Gross margin divides gross profit by selling price, while markup divides gross profit by cost. On a USD 100 cost and USD 150 sale, margin is 33.33% and markup is 50%.
Use the correct cost
Include the cost definition that matches the decision: purchase cost, landed cost, direct labour, transaction fees, or another documented basis. A simple product margin does not include every operating expense.
From gross margin to business profit
Gross margin is not net profit. Rent, payroll, marketing, financing, depreciation, tax, waste, and overhead still matter in United States. Review realized margin using accounting records instead of relying only on list prices.
Use the United States Profit Margin Calculator
Frequently asked questions
Is 50% markup the same as 50% margin?
No. A 50% markup on cost produces a 33.33% gross margin.
Can markup exceed 100%?
Yes. Margin on a positive selling price remains below 100%, while markup can exceed it.
Last reviewed 22 June 2026. This guide provides general information, not tax, legal or financial advice.
Reviewed for clarity and source accuracy by Toolnovax Editorial Team, business operations and automation specialists.