Margin Calculator
Margin calculator: enter cost and selling price to get gross profit, gross margin percentage and the matching markup percentage.
Editorial review: Farrow (pseudonym; identity and professional credentials are not disclosed). This page is for educational purposes, not professional advice.
Updated
Your inputs
Results update as you type. Nothing you enter leaves your device.
Results
- Gross profit
- $40.00
- Markup
- 66.67%
Example with the starting values
These results use the calculator's initial inputs. Change the values above to calculate your own estimate.
Inputs
- Cost
- 60 $
- Selling price
- 100 $
Results
- Gross margin
- 40%
- Gross profit
- $40.00
- Markup
- 66.67%
How does the Margin Calculator work?
Gross profit = price − cost. Gross margin % = profit ÷ price × 100, so it is measured against revenue. Markup % = profit ÷ cost × 100, measured against cost.
A 50% markup is only a 33.3% margin. Margin can never reach 100%, but markup has no ceiling, which is why mixing them up leads to underpriced products.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of cost. The same sale gives a smaller margin than markup.
How do I get a 40% margin?
Set price = cost ÷ (1 − 0.40). A $60 cost needs a $100 price for a 40% margin.
Is gross margin the same as net margin?
No. Gross margin ignores overhead, taxes and interest. Net margin includes them.
What is a good profit margin?
It varies by industry: retail often runs 20% to 50% gross, software far higher. Compare against your own sector.