Margin Calculator

This calculator has three modes depending on what you know:

• Margin: Enter your cost and selling price to find profit, gross margin percentage, and markup percentage.
• Markup: Enter your cost and desired markup percentage to find the selling price, profit, and resulting margin percentage.
• Profit: Enter your revenue and profit margin percentage to find the cost and profit amount.

The comparison table at the bottom shows the relationship between margin and markup so you can quickly convert between the two.

Gross Margin is based on revenue (selling price):

Gross Margin % = (Selling Price - Cost) / Selling Price × 100

Example: Cost $80, Selling Price $100. Margin = ($100 - $80) / $100 = 20%.

Markup is based on cost:

Markup % = (Selling Price - Cost) / Cost × 100

Same example: Markup = $20 / $80 = 25%.

Converting between margin and markup:

Margin = Markup / (1 + Markup) Markup = Margin / (1 - Margin)

A 25% markup = 20% margin. A 50% markup = 33.3% margin. These look similar but are very different. Using the wrong one can lead to mispriced products.