Margin and Markup Calculator

Margin is calculated as profit relative to revenue, while markup is calculated as profit relative to cost.

To use the Margin and Markup Calculator, enter your Cost Price, Selling Price. The calculator instantly computes Gross Margin Percentage, Markup Percentage and more. Results update in real time as you change any input — no submit button needed.

To use the Margin and Markup Calculator, enter your Cost Price, Selling Price. The calculator instantly shows Gross Margin Percentage, Markup Percentage and additional metrics. Results update in real time as you adjust any input — no calculate button needed.

Pricing calculations directly impact profitability. A 1% improvement in gross margin on 1M revenue equals 10,000 in additional profit. Regular monitoring of these metrics is a hallmark of high-performing businesses.

How to Use This Calculator

Enter your Cost Price (e.g. 60 in ) and Selling Price (e.g. 100 in ). Results update instantly as you type — adjust any value to compare scenarios.

The Formula

Gross Profit = Selling Price - Cost Price

Margin % = (Gross Profit / Selling Price) × 100%

Markup % = (Gross Profit / Cost Price) × 100%

Worked Example

Item purchased at 60 cost and sold at 100 price.

• Gross Profit: 100 - 60 = 40.

00.

• Profit Margin: × 100 = 40.00%.

• Markup: × 100 = 66.67%.

Understanding Your Result

Gross margin and markup are different: 50% markup = 33% gross margin. Pricing strategy varies by industry: SaaS software targets 70–85% gross margins; e-commerce typically 30–50%; professional services 50–70%; retail 25–50%; restaurants 60–75% (gross food cost margin). A gross margin below your industry average signals pricing pressure or high COGS — investigate before scaling. Contribution margin (revenue minus variable costs only) is the more useful metric for short-term pricing and production decisions.