Margin & Markup Calculator
Use our margin and markup calculator to analyze the profitability of your products. In "Calculate from prices" mode, enter the cost and selling price to instantly get the gross profit margin and markup percentage. In "Find selling price" mode, enter your cost and target margin or markup — and get the exact price you need to charge.
Frequently Asked Questions
What is the difference between margin and markup?
Margin (gross profit margin) is profit as a percentage of the selling price: Margin = (Profit ÷ Revenue) × 100. Markup is profit as a percentage of the cost: Markup = (Profit ÷ Cost) × 100. For the same product, markup is always higher than margin. For example, a 50% markup corresponds to only a 33.3% margin.
Which is more useful — margin or markup?
Margin is preferred in financial analysis and accounting because it directly shows what percentage of revenue is profit. Markup is more commonly used in retail and purchasing when you need to calculate the selling price from cost. Both metrics complement each other.
How do I calculate selling price from a target margin?
Formula: Selling Price = Cost ÷ (1 − Margin%). For example, if your cost is $100 and you want a 30% margin: $100 ÷ (1 − 0.30) = $142.86. This is exactly what the "Find selling price" mode does automatically.
What is a good profit margin?
It depends heavily on the industry. Grocery retail averages 2–5%, software and SaaS can reach 60–80%, while manufacturing typically ranges from 10–20%. The key is to benchmark against your specific industry and ensure your margin covers all fixed costs and provides a return on investment.