Calculate gross profit margin, profit and markup from your cost and revenue. Instant results, no sign-up.
Enter your cost and selling price (revenue) to see the gross profit, the profit margin as a percentage of revenue, and the equivalent markup on cost.
A margin calculator turns a cost and a selling price into the three numbers
that matter most in pricing: the gross profit in money, the profit margin as a
percentage of revenue, and the markup applied to cost. Enter both figures and
the results update instantly.
Margin and markup describe the same profit from two angles. Margin is measured
against the higher selling price, so it is always a smaller percentage than the
markup measured against cost. Knowing both helps you set prices with confidence
and compare products of very different sizes on a level footing.
How to use
Enter the item cost.
Enter the revenue (selling price).
Read the margin, profit and markup below.
Formula
Margin measures profit against the selling price; markup measures the same profit against cost.
A $40 cost sold for $100 makes $60 profit — a 60% margin and a 150% markup.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 50% markup on a $40 cost is only a 33.3% margin.
What is a good profit margin?
It varies by industry, but many retail businesses aim for gross margins of 30%–50%. Compare against typical margins in your specific sector.
How do I calculate selling price from a target margin?
Divide the cost by (1 − margin/100). For a 40% margin on a $60 cost, the price is 60 / 0.6 = $100.