calculate BUSINESS TOOLS

Margin Calculator

Profit Margin vs Markup. Don't confuse them.

Cost of Goods

Selling Price

How It Works: Calculates Gross Margin (profit as % of price) and Markup (profit as % of cost).

Key Inputs:

Formulas: Margin = (Profit / Price) × 100.
Markup = (Profit / Cost) × 100.

Gross Margin

37.5%

Markup

60.0%

Profit per Unit

$30

Gross Margin vs. Markup

These two terms are often confused but mean very different things for your bottom line.

Margin: (Price - Cost) / Price. It's profit as a slice of the selling price.
Markup: (Price - Cost) / Cost. It's profit as a percentage added above the cost.

A 50% markup is NOT a 50% margin. If you buy for $100 and sell for $150, you have a 50% markup but only a 33.3% margin.