Margin & Markup Calculator
Calculate gross margin percentage, markup percentage, and cost or sale price from any two known values. Understand the difference between margin (of revenue) and markup (of cost).
Profit
$40.00
Margin
40.00%
Markup
66.67%
How to use the margin & markup calculator
Enter cost and selling price. Profit, gross margin (% of revenue), and markup (% of cost) compute together — they're commonly confused.
Formula & explanation
Margin = (Price − Cost) ÷ Price × 100. Markup = (Price − Cost) ÷ Cost × 100. They never equal each other except at 0%.
Examples
Cost 60, price 100: profit 40, margin 40%, markup 66.67%. A 50% margin requires a 100% markup.
Frequently asked questions
- Which should I report?
- Margin for retail/services analysis (denominator is what customers pay). Markup for product cost-plus pricing.
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