PROFIT MARGIN & MARKUP CALCULATOR
Calculate profit margin, markup and gross profit, or work backwards from a target margin to a selling price. Free, with clear formulas and examples.
THE CLEARER PICTURE
Enter your details or try the example to see how it works.
A LITTLE CONTEXT GOES A LONG WAY
Gross profit = selling price − cost. Margin divides that profit by the selling price. Markup divides the same profit by cost. A product that costs 60 and sells for 100 has 40% margin and 66.67% markup. These percentages describe different things even though the profit is identical.
Selling price = cost ÷ (1 − target margin). To earn a 30% margin on a cost of 70, the target price is 100. The calculated price rounds up to the smallest currency unit so rounding does not reduce the requested margin.
Include the costs you want this calculation to cover, such as materials or fulfillment. Use prices excluding sales tax when that tax is collected for a tax authority. This single-unit calculation does not infer business overhead, discounts or taxes. Add those costs yourself where appropriate.
Created by Ostro. Read our editorial standards or report a correction. The guide above explains the method, assumptions and examples.
GOOD TO KNOW
With a positive cost, no finite selling price produces a 100% margin. A zero-cost sale can have a 100% actual margin, but markup is undefined when cost is zero.
Yes. If your selling price is below your cost, gross profit and margin are negative. Margin is undefined when the selling price is zero.
No. Your entries stay in this open page and reset when you refresh or leave. There is no account, autosave or cloud storage. Download or copy what you need before closing the page.
