How this calculator works
Gross profit is selling price minus cost. Margin measures profit as a share of selling price, while markup measures profit as a share of cost. Include relevant costs before using the result to make a pricing decision.
The formula
Profit = Selling price − Cost
Margin = (Profit ÷ Selling price) × 100
Markup = (Profit ÷ Cost) × 100
Target price = Cost ÷ (1 − Target margin ÷ 100)A quick example
An item costing USD 60 and selling for USD 100 produces USD 40 profit, a 40% margin, and a 66.67% markup.
How to use this calculator
- Choose to calculate margin or find a selling price.
- Enter your cost, currency, and selling price or target margin.
- Calculate to review profit, margin, and markup together.
More ways to find profit
Use cost and revenue to find margin and markup, cost and target margin to find revenue, or cost and a known profit to find both percentages. Revenue means selling price here. Margin divides profit by revenue; markup divides profit by cost.
A few common questions
Are margin and markup the same?
No. Margin divides profit by selling price; markup divides it by cost. A 50% markup on cost gives a 33.33% margin.
Can I calculate a loss?
Yes. When selling price is below cost, profit, margin, and markup are negative.
What happens if cost is zero?
For a positive selling price, margin is 100%. Markup is undefined because it would divide by zero. Reverse pricing requires a positive cost.
Are tax and overhead included?
Only if you include them in your input cost. This is a gross-profit estimate, not a complete business profitability analysis.