Margin Calculator

Calculate gross margin, markup, and profit for your business or product sales.

The cost to produce or buy the item.
The price you sell the item for.
Profit
0.00
Gross Margin 0.00%
Markup 0.00%

Quick Tip:

Margin is the percentage of the selling price that is profit.
Markup is the percentage of the cost that is added to get the selling price.

Margin vs. Markup: What's the Difference?

Understanding the difference between margin and markup is crucial for setting the right price for your products and services. While they both measure profitability, they are calculated differently.

Gross Margin

Gross margin is a percentage of the revenue. It tells you how much of every dollar earned is actual profit.

Margin = (Profit ÷ Revenue) × 100

Markup

Markup is a percentage of the cost. It tells you how much you have increased the price over your costs.

Markup = (Profit ÷ Cost) × 100

Example Calculation

If you buy a widget for $50 and sell it for $100:

  • Profit: $100 - $50 = $50
  • Margin: ($50 / $100) = 50%
  • Markup: ($50 / $50) = 100%