Formula
Profit = price − cost. Markup = profit ÷ cost. Margin = profit ÷ selling price.
BUSINESS
Markup and Margin Calculator
Calculate selling price, profit, markup and gross margin.
CALCULATOR GUIDE
How to use the Markup and Margin Calculator
Compare markup and gross margin before setting a price. Markup uses cost as its base; margin uses selling price.
Worked example
A $60 cost sold for $100 earns $40: 66.67% markup and 40% gross margin.
Assumptions and limits
Direct cost alone does not include taxes, fees, shipping, discounts, returns, overhead or income tax.
Frequently asked questions
Are markup and margin the same?
No. They use different bases, so the percentages differ for the same sale.
What price gives a 40% margin?
Divide cost by 1 minus 0.40. A $60 cost therefore needs a $100 selling price.
How this calculator works
Enter your known values and select Calculate result. Review units and inputs before relying on the planning estimate.
Actual quantities, prices and requirements can vary. Confirm critical work with a supplier or qualified professional.