Profit Margin Calculator
Find gross margin and markup from cost and price, or the price you need to hit a target margin.
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Gross Margin
- Cost
- Price
- Gross profit per unit
- Markup
- Total profit
- Margin vs Markup
Products
Items you add are saved in this browser.
| Product | Cost | Price | Margin | Markup | Remove |
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How to Calculate Profit Margin
Gross profit is the selling price minus the cost of the item. Gross margin is that profit as a share of the price; markup is the same profit as a share of the cost. The two are easy to mix up, and pricing with a markup when you meant a margin leaves money on the table.
Gross profit = price − cost Margin = profit ÷ price Markup = profit ÷ cost
Price for a target margin = cost ÷ (1 − margin)
Markup = margin ÷ (1 − margin) Margin = markup ÷ (1 + markup)
Worked Example
Margin and Markup Equivalents
| Margin | Markup | Price on a $100 Cost |
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Tips
This is gross margin: it covers only the cost of the product. Rent, wages, marketing and other overhead come out of gross profit, which is why net margin is much lower. See the net profit calculator for the full picture.