Margin Calculator - Calculate Profit, Margin & Markup

Profit Margin & Markup Calculator

Determine the selling price, gross margin, and markup percentage for your products or services.

Business Profit Tool

Find Margin & Profit
Find Selling Price
$
Total cost to produce/buy one unit.
$
Sales Tax/VAT? This calculator calculates Gross Profit (before tax). To calculate the final price for customers, use our Sales Tax Calculator or VAT Calculator.
Gross Profit
$0.00
Gross Margin
0%
Markup
0%

Understanding Margin vs. Markup

For business owners and retailers, confusing Margin and Markup is a common but costly mistake. While both measure profitability, they use different baselines. This Margin Calculator helps you see both metrics simultaneously to price your products correctly.

The Difference Explained

Gross Margin

The percentage of the Selling Price that is profit.
Formula: (Price - Cost) / Price
Use Case: Investors and accountants use Margin to judge company health. You can never have a margin of 100% (unless cost is 0).

Markup

The percentage added to the Cost to get the selling price.
Formula: (Price - Cost) / Cost
Use Case: Used when setting prices. You can have a markup of 200%, 500%, or more.

Real-World Example

You buy a shirt for $50 and sell it for $100.

  • Profit: $50.
  • Markup: 100% (Because you doubled the cost).
  • Margin: 50% (Because $50 profit is half of the $100 revenue).
Tip: If you want a 50% Margin, you must apply a 100% Markup. Using the wrong one can lead to underpricing your goods!

Disclaimer & Legal Notice

Scope: This calculator computes Gross Margin and Profit. It considers the Cost of Goods Sold (COGS) but does not account for operating expenses like rent, utilities, payroll, or marketing (which would determine Net Profit).

Not Financial Advice: This tool is for educational and planning purposes only. Please consult an accountant for professional business advice.