Margin Calculator

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Enter any two values you know and this calculator solves for the rest: gross margin percentage, markup percentage, selling price, or cost. The comparison table shows both metrics side by side so you can see exactly how margin and markup relate to each other for any product or service.

How to Use

01

Choose what you want to solve for using the Solve For dropdown.

02

Enter the two known values in the fields that appear.

03

Click Calculate to see margin %, markup %, gross profit, and all related values.

04

Use the comparison table at the bottom to understand the difference between margin and markup.

How Margin and Markup Actually Differ

Gross profit margin and markup percentage both measure profitability, but they divide the same number by different bases. Margin divides gross profit by revenue (the selling price), telling you what fraction of each sale is profit. Markup divides gross profit by cost, telling you how much above cost you charged. Because the denominator differs, margin is always a smaller number than markup for the same transaction, unless you are selling at or below cost. The four solver modes here let you work in any direction: plug in cost and revenue to get both percentages, or plug in cost plus a target margin to find the selling price you need.

Worked Example

  1. A product costs 80 to produce and sells for 120.
  2. Gross profit = 120 minus 80 = 40.
  3. Gross margin % = 40 / 120 x 100 = 33.33%.
  4. Markup % = 40 / 80 x 100 = 50%.
  5. To find the price needed for a 40% margin: revenue = 80 / (1 minus 0.40) = 133.33.
  6. To find the cost behind a 130 price at 35% margin: cost = 130 x (1 minus 0.35) = 84.50.

When to Use This Calculator

  • Setting a selling price that hits a target profit margin
  • Checking whether a supplier's quoted markup matches the margin you expect
  • Finding gross profit quickly from cost and revenue figures
  • Converting between markup and margin percentages
  • Reviewing product level profitability before a pricing change
  • Back calculating a cost structure from a known price and margin target

Important Note

This calculator computes gross profit margin only. It does not factor in operating expenses, taxes, overhead, or any costs below the gross profit line. Net profit margin, which subtracts all expenses from revenue, will always be lower than the gross margin shown here. Treat these numbers as a pricing starting point, not a replacement for full cost analysis.

Margin vs. Markup: Which to Use?

Use margin % when comparing profitability across products with different selling prices
Use markup % when pricing from a known cost and a target percentage uplift
Showing both prevents miscommunication between buyers and sellers
Mixing margin and markup in the same conversation causes pricing errors
A 50% markup equals only a 33.33% margin, not 50%
Gross margin excludes operating costs and should not be confused with net profit margin

Key Features

Four Solver Modes

Solve for margin %, markup %, revenue, or cost depending on which value you are missing.

Simultaneous Results

Always shows both margin and markup together so you can see the full picture at a glance.

Margin vs. Markup Table

Side by side comparison clarifies the formula and basis behind each metric.