Markup & Margin Calculator
Results
$50.00
Profit
33.33%
Gross Margin
50.00%
Markup
Margin = profit ÷ selling price · Markup = profit ÷ cost
About
The Markup & Margin Calculator helps retailers, wholesalers, and service businesses price their products correctly. There are three modes: calculate margin and markup from a known cost and selling price; calculate the selling price and markup from a desired gross margin percentage; or calculate the selling price and margin from a desired markup percentage. Understanding the difference between markup and margin is critical — a 50% markup is not the same as a 50% margin. Markup is profit divided by cost; margin is profit divided by selling price. This tool makes both crystal clear with instant results.
How to use
- 1 Select the mode tab that matches your starting point: "From Cost & Price", "From Desired Margin", or "From Desired Markup".
- 2 Enter the cost price (what you pay for the item or service).
- 3 Enter the second input — selling price, desired margin %, or desired markup % depending on the mode.
- 4 The profit, gross margin %, and markup % are calculated and displayed instantly.
- 5 Switch between modes to explore different pricing scenarios without re-entering the cost.
- What is the difference between markup and gross margin?
- Markup is profit expressed as a percentage of cost: (Selling Price − Cost) ÷ Cost × 100. Gross margin is profit expressed as a percentage of selling price: (Selling Price − Cost) ÷ Selling Price × 100. For a product costing $60 and selling at $100, the markup is 66.7% but the margin is 40%. Because the denominators differ, the same profit produces different percentages — which is why mixing the two up leads to pricing mistakes.
- If I want a 50% gross margin, what markup do I need?
- A 50% gross margin requires a 100% markup. The formula is Markup % = Margin % ÷ (1 − Margin %). For 50% margin: 0.50 ÷ 0.50 = 1.00 = 100% markup. Use the "From Desired Margin" mode and enter 50 to see the required selling price and the resulting markup automatically.
- Which metric should I use — markup or margin?
- Most accounting and financial reporting uses gross margin, because it relates profit to revenue. Retail and wholesale businesses often quote markup internally because it is easier to apply to cost prices. The important thing is to be consistent and know which one you are using when setting prices or comparing with industry benchmarks.