Profit Margin Calculator
Calculate profit, gross margin and markup from cost and selling price, or find the price for a target margin.
From cost and price
- Profit
- 40.00
- Gross margin
- 40%
- Markup
- 66.67%
Price for a target margin
- Selling price
- 100.00
- Profit
- 40.00
- Markup
- 66.67%
What is Profit Margin Calculator?
Margin and markup both describe profit but measure it against different things. Margin is profit as a share of the selling price. Markup is profit as a share of the cost.
Mixing them up leads to prices that are too low.
What this tool does
The first part takes a cost and a selling price and shows the profit, the gross margin and the markup. The second part takes a cost and a target margin and shows the selling price you need.
How to use it
- Enter your cost and your selling price.
- Read the profit, margin and markup.
- Use the second part to find the price for a margin you want.
Did you know?
- A 50 percent markup gives only a 33 percent margin.
- To get a 50 percent margin you need to price at double the cost, which is a 100 percent markup.