Margin Calculator

Calculate gross profit margin, markup, revenue, or cost. Solve for any variable given the others.

Solve for:
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Calculate your profit margin, selling price, or required markup with our free margin calculator. Switch between margin-based and markup-based modes depending on how you price your products.

How Margin Is Calculated

Margin % = (Selling Price − Cost) ÷ Selling Price × 100. This differs from markup, which is (Selling Price − Cost) ÷ Cost × 100, since margin is based on selling price while markup is based on cost.

How to Use This Calculator

  1. Choose margin mode or markup mode
  2. Enter your cost and either your desired margin/markup percentage or your selling price
  3. Click Calculate to see the remaining values filled in automatically

Frequently Asked Questions

Why is margin always a lower percentage than markup on the same sale?

Because margin divides profit by the (larger) selling price, while markup divides profit by the (smaller) cost.

Which one should I use for pricing decisions?

Margin is generally more useful for understanding overall business profitability, while markup is often easier for quickly setting a price.

What's a healthy profit margin?

This varies widely by industry, retail often runs 20-50%, while services or software can run much higher.

Does this page cover markup calculations too?

Yes, this calculator includes both margin and markup modes on the same page.