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Finance

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 margin
40%
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.

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