Price with confidence — see gross margin, markup and profit at a glance.
Cost + selling price → margin & markup
Margins are calculated on pre-tax figures. Add tax separately in the Tax Calculator.
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Margin and markup both describe profit, but against different bases. Gross margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost. A product that costs 80 and sells for 100 has a 20% margin but a 25% markup — same money, different denominator, which is why people confuse them.
This calculator lets you solve in any direction: enter cost and price to see margin and markup, or set a target margin or markup to get the selling price you should charge, plus profit per unit and total profit.
Enter your unit cost.
Add a selling price or a target margin.
See margin, markup and profit instantly.
Adjust to hit your numbers.
Margin is profit divided by the selling price; markup is profit divided by the cost. The same profit gives a lower margin percentage than markup percentage.
Selling price = cost ÷ (1 − margin%). For example, a 40% margin on a cost of 60 gives a price of 100. The tool does this automatically.
It varies by industry — software often runs 70%+ gross margin while retail may be 20–40%. Compare against benchmarks for your sector rather than a single number.
Markup % = (price − cost) ÷ cost × 100. A cost of 80 sold at 120 is a 50% markup.