Business tools

Margin & Markup Calculator

Set a price from your cost and target margin or markup, or compare the gross profit and percentages in a price you already have.

Use the same currency for cost and selling price. Amounts display with a generic dollar sign; no currency is assumed or converted.

The calculation runs locally in your browser. No input values are saved or sent to a server.

Choose how you want to work out your price.

Your direct cost for one item or service.

The current price charged for one item or service.

Margin versus markup

A $50 cost and $100 selling price produce $50 gross profit, 50% margin, and 100% markup. The dollar sign is illustrative; this calculator does not select or convert currencies.

About this calculator

Margin and markup are different

Gross margin is the share of the selling price left after direct cost. Markup is the percentage added to cost to reach the selling price. Both describe gross profit, but use different bases.

A quick example

If an item costs $50 and sells for $100, gross profit is $50, gross margin is 50% ($50 ÷ $100), and markup is 100% ($50 ÷ $50).

Frequently asked questions

What is gross margin?

Gross margin is gross profit divided by selling price, expressed as a percentage.

What is markup?

Markup is gross profit divided by cost, expressed as a percentage.

Can target margin be 100%?

Not in target-margin mode. The price formula divides by zero at 100%; choose a target below 100%.