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Marginal Profit Calculator

Marginal profit calculator works out Gross profit and Gross margin from Revenue or selling price, Cost of goods sold and Units sold. The default figures on this page give marginal profit of 10,000; change any entry and the result, the working and the sources update together.

Marginal profit
10,000
Profit Margin Calculator
Gross profit
50,000
Gross margin
38.4615 %
Equivalent markup
62.5 %
Operating profit
50,000
Operating margin
38.4615 %
Net profit
50,000
Net margin
38.4615 %
Selling price
130,000
Cost
80,000
Profit per unit
50,000
Total profit across all units
50,000
Marginal revenue
30,000
Marginal cost
20,000
Marginal profit as a share of marginal revenue
33.3333 %
Worked out from Gross margin = (price - cost) / price; markup = (price - cost) / cost and 3 other sources.

Your figures

Updates as you type
Formatting only. This does not change the calculation.
Marginal mode: total revenue before the extra output.
Marginal mode: total cost before the extra output.

How this is worked out

3 steps
  1. Marginal revenue = 130000 - 100000 = 30000
  2. Marginal cost = 80000 - 60000 = 20000
  3. Marginal profit = 30000 - 20000 = 10000

Its 8 worked examples are re-run on every release, last on 15 September 2026. What changed

Sources and references

4 sources
Gross margin = (price - cost) / price; markup = (price - cost) / cost
The two differ by their denominator, which is why a 50% markup is only a 33.3% margin.
Break-even units = fixed costs / (price - variable cost per unit)
Standard cost-volume-profit analysis.
Marginal profit = marginal revenue - marginal cost, i.e. the change in total revenue less the change in total cost between two output levels
Standard cost-volume-profit / microeconomic definition; profit is maximised where marginal profit reaches zero.

Keep this result

Save it, change one figure, then compare the two

The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.

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What the marginal profit calculator calculates

Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused.

How to use this marginal profit calculator

Enter Revenue or selling price, Cost of goods sold, Units sold and Revenue at the previous output level. Gross profit updates as you type. Change one figure at a time to see what drives the result.

How the result is worked out

Open “How this is worked out” beside the result for the step-by-step calculation behind Gross profit, Gross margin and Equivalent markup.

The method follows Gross margin = (price - cost) / price; markup = (price - cost) / cost, Break-even units = fixed costs / (price - variable cost per unit), Marginal profit = marginal revenue - marginal cost, i.e. the change in total revenue less the change in total cost between two output levels and SEC EDGAR XBRL Guide - GrossProfit = Revenues - CostOfRevenue; OperatingIncomeLoss is gross profit less operating expenses.

What you can compare

Change one input at a time to see how it affects Gross profit, Gross margin and Equivalent markup. The inputs you can vary are Revenue or selling price, Cost of goods sold, Units sold, Revenue at the previous output level and Cost at the previous output level.

Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.

Embed this calculator on your website

Copy this code into any page. The calculator appears with the figures currently entered, sizes itself to fit, and a small credit line links back here. Free, no account, no ads inside it, no tracking of your readers. Set your own figures and fixed fields; Personal removes the credit line, sets your colour and shows you which sites use it.

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Frequently asked questions

How do I calculate marginal profit?

Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused. Open “How this is worked out” beside the result to see each step for your own figures.

How do I calculate a 20% profit margin?

It needs Revenue or selling price, Cost of goods sold, Units sold, Revenue at the previous output level and Cost at the previous output level. Nothing else is required, and the figures stay in your browser.

Is a 50% profit margin too much?

Computes gross, operating and net profit margin from revenue and costs, and reports the equivalent markup so the two are never confused. On the figures this page opens with — revenue or selling price 100 and cost of goods sold 60 — the marginal profit is 10,000. Put your own figures in their place and the working updates beside the result.

How do I calculate a 30% profit margin?

The result gives Gross profit, Gross margin, Equivalent markup, Operating profit, Operating margin and Net profit, each labelled with its unit so the figure can be read on its own.

What information do I need for the marginal profit calculator?

You need Revenue or selling price, Cost of goods sold, Units sold, Revenue at the previous output level and Cost at the previous output level. The page opens with default figures that give marginal profit of 10,000, so you can see the scale before entering your own.

What does this marginal profit calculator show?

It shows Gross profit, Gross margin, Equivalent markup, Operating profit, Operating margin, Net profit, Net margin and Selling price, with the working and any warnings for your entries.

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