Margin Calculator

Calculate gross profit margin, markup percentage, and pricing using cost and selling price inputs

Input Parameters

Calculation Results

Calculation Results

Gross Profit ($): 0.00

Gross Profit Margin (%): 0.00

Markup (%): 0.00

Selling Price (if Cost is $): 0.00

Where:
Gross Profit = Selling Price - Cost Price
Gross Profit Margin = (Gross Profit / Selling Price) × 100
Markup = (Gross Profit / Cost Price) × 100

Margin Calculator Calculator Usage Guide

Learn how to use the Margin Calculator to determine pricing and profitability

How to Use This Calculator

  1. Enter either your Cost Price or your Selling Price (but not both). The calculator will automatically calculate the missing value if possible.
  2. Click the "Calculate" button to compute your margin metrics.
  3. The calculator provides three key metrics:
    • Gross Profit ($): The difference between what you sell for and what you cost to purchase.
    • Gross Profit Margin (%): The percentage of the selling price that is profit.
    • Markup (%): The percentage increase over the cost price.
  4. Use the "Reset" button to clear all inputs and start over.

Understanding Margin vs. Markup

These terms are often confused but represent different calculations:

  • Markup: The amount added to the cost price to arrive at the selling price.

    Formula: Markup (%) = (Selling Price - Cost Price) / Cost Price × 100

  • Margin: The percentage of the selling price that is profit.

    Formula: Margin (%) = (Selling Price - Cost Price) / Selling Price × 100

Practical Applications

This calculator is useful for:

  • Setting retail prices based on cost
  • Determining if a sale is profitable
  • Comparing profitability across different products
  • Business planning and financial analysis