Find your gross margin, gross profit and markup from the cost of a product and its selling price. Margin and markup are often confused, so both are shown.
How the margin calculator works
Gross profit = selling price − cost. Gross margin = gross profit ÷ selling price × 100. Markup = gross profit ÷ cost × 100.
Example
A product that costs $60 and sells for $100 earns $40 gross profit. The gross margin is 40% and the markup is 66.67%.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost, so markup is always larger than margin for the same product.
How do I price to hit a target margin?
Divide the cost by 1 minus the margin. For a 40% margin on a $60 cost, the price is 60 ÷ 0.6 = $100.
Does this include other expenses?
No. It shows gross figures only, before overheads, shipping and taxes.
Please note: results are estimates for general information only and are not financial advice. Read our full disclaimer.