Margin Calculator
Enter your cost and either the revenue or the markup to instantly see gross profit, profit margin, and markup.
Example
Cost = $60, Revenue = $100. Gross profit = 100 - 60 = $40. Profit margin = 40 / 100 = 40%. Markup = 40 / 60 = 66.67%.
How it works
Choose whether you know the revenue or the markup, then enter your cost. The tool derives the missing value and computes gross profit, profit margin %, and markup %.
Good to know
This Margin Calculator turns two numbers into the full picture of a sale's profitability. You give it your cost and either the revenue (selling price) or a target markup percentage, and it instantly returns gross profit in dollars, profit margin as a percentage of revenue, and markup as a percentage of cost. It is built for small-business owners, freelancers, resellers, and anyone pricing a product or service who needs to know whether a price actually leaves room to profit.
Use it in two directions. In "By revenue" mode you already know what you charge and what something costs, and you want to check the resulting margin and markup. In "By markup" mode you start from a cost and a desired markup, and the tool back-solves the selling price using price = cost x (1 + markup/100) so you can set a number that hits your profit goal.
To read the output, treat margin and markup as two views of the same profit. Margin (profit divided by revenue) tells you what share of each dollar collected you keep; markup (profit divided by cost) tells you how far above cost you priced. The bar chart shows cost versus profit at a glance, and a negative gross profit or margin signals you are pricing below cost. The most common mistake is confusing the two percentages, so always confirm which one a supplier or marketplace is quoting.
A practical caveat: this is a gross calculation. "Cost" here means the direct cost of the item or job only. It does not subtract overhead, shipping, payment-processing fees, taxes, returns, or labor not included in your cost figure, so your net profit will be lower than the gross profit shown.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price (profit / revenue), while markup is profit as a percentage of the cost (profit / cost). For the same product, markup is always the larger number; a 40% margin equals a 66.67% markup.
How do I find the selling price from a desired markup?
Switch to "By markup" mode and enter your cost and target markup. The price is cost x (1 + markup/100). For example, $60 cost at 66.67% markup gives a $100 selling price.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
How do you calculate profit margin from cost and selling price?
Subtract cost from the selling price to get gross profit, then divide that profit by the selling price and multiply by 100. For example, a $40 profit on a $100 price is a 40% margin.
What is a good profit margin for a small business?
It varies widely by industry: many retailers see gross margins around 25 to 50 percent, while software or services can run much higher. There is no universal benchmark, so compare against typical margins for your specific sector.
Can profit margin be more than 100 percent?
No. Because margin is profit divided by revenue, and profit can never exceed revenue, margin tops out below 100 percent. Markup, however, has no upper limit because it is measured against cost.
How do I convert markup to margin?
Divide the markup by (1 + markup) when both are expressed as decimals. For instance, a 0.6667 markup divided by 1.6667 gives 0.40, or a 40 percent margin.
What does a negative margin mean?
A negative margin means the selling price is below the cost, so the sale loses money rather than producing profit. The size of the negative percentage shows how far below cost the price falls.
Is gross profit the same as net profit?
No. Gross profit is revenue minus the direct cost of goods, while net profit also subtracts operating expenses such as overhead, fees, and taxes. Net profit is always lower than or equal to gross profit.
How do I price a product to reach a specific profit margin?
Divide your cost by (1 minus the desired margin expressed as a decimal). For a 40 percent margin on a $60 cost, divide $60 by 0.60 to get a $100 selling price.
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