Margin Calculator

Calculate your profit margin and markup instantly — two critical metrics every business owner needs to understand for pricing strategy.

What this calculator does

Margin = (Selling Price − Cost) / Selling Price × 100%. Markup = (Selling Price − Cost) / Cost × 100%.

How it works

Confusing margin and markup is a common mistake that leads to underpricing products and losing money.

Formula

Profit Margin & Markup Formulas

Gross Margin % = ((Revenue − COGS) ÷ Revenue) × 100 Markup % = ((Revenue − COGS) ÷ COGS) × 100

COGS = Cost of Goods Sold. To find price from desired margin: Price = Cost ÷ (1 − Margin%/100)

Worked example

You manufacture a product for $40 and sell it for $70.

  1. Profit = $70 − $40 = $30
  2. Margin = ($30 ÷ $70) × 100 = 42.9%
  3. Markup = ($30 ÷ $40) × 100 = 75%

Result: Gross margin = 42.9%, Markup = 75%

Frequently asked questions

What is the difference between margin and markup?

Margin is based on selling price (what you keep). Markup is based on cost (what you add). A $50 cost with $100 price = 50% markup but 50% margin.

What is a good profit margin?

Retail: 10–35%. Software: 70–90%. Restaurants: 3–9%. It varies heavily by industry.