Gross Margin Calculator
Calculate your profit margin and understand the difference between margin and markup.
Calculate Margin
Enter cost and selling price to calculate your margin
$
$
Gross Margin
50.00%
Markup
100.00%
Profit
$50
Price Breakdown
Understanding Margin vs Markup
What is Margin?
Gross margin is the percentage of the selling price that is profit. Calculated as: (Price - Cost) / Price × 100
If you sell at $100 and your cost is $60, your margin is 40%
What is Markup?
Markup is the percentage added to cost to get the selling price. Calculated as: (Price - Cost) / Cost × 100
If your cost is $60 and you add 66.7% markup, your price is $100
Key Difference
A 50% margin is not the same as a 50% markup. A product with $50 cost and 100% markup sells for $100 (margin = 50%).
Frequently Asked Questions