Margin & Markup Calculator
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Calculate gross margin and markup separately, or find a selling price for your target margin. See the basis behind each percentage.
Preparing your tool…
A visual example
Same profit, different percentages
Margin uses selling price Calculation Result Gross profit ÷ price 20 ÷ 100 Margin 20% Margin uses selling price
Cost 80 and price 100 leave a gross profit of 20.
Markup uses cost Calculation Result Gross profit ÷ cost 20 ÷ 80 Markup 25% Markup uses cost
The same gross profit is compared with cost instead.
A 20% margin is not a 20% markup.
Illustrative example. Synthetic numeric example. Not current data from your business.
How to use it
- Enter the unit cost and current selling price to compare margin and markup.
- Set a target margin to calculate a corresponding price. Use the same currency and tax basis for all amounts.
- Compare selling price, gross profit, margin and markup. Export the calculation if you need a record.
Example: cost 80.00 and selling price 100.00 give gross profit 20.00, margin 20% and markup 25%. A 20% markup instead gives a price of 96.00.
Details & limits
Single-unit calculation in one currency. Enter costs and prices on a consistent tax basis. Overheads and taxes are not automatically included.
Why are margin and markup different?
Margin divides gross profit by the selling price; markup divides it by cost. Price for a target margin m is cost ÷ (1 − m/100), while price for markup u is cost × (1 + u/100). A target margin of 100% or more cannot be used with positive cost. Gross profit is not net profit: overheads and other expenses still need to be covered.