Margin calculator — margin, markup, profit and price
Margin and markup are the two most-confused numbers in pricing, and mixing them up quietly erodes profit. This calculator lets you work from whatever you know — cost and price, cost and a target margin, or cost and a target markup — and shows all four figures together so the relationship is obvious.
How it works
- Gross margin % =
(price − cost) ÷ price × 100 - Markup % =
(price − cost) ÷ cost × 100 - Price for a target margin =
cost ÷ (1 − margin) - Price for a target markup =
cost × (1 + markup)
The key point: margin divides profit by the larger number (price), so it is always smaller than markup for the same item.
Worked example
An item costs 60 and sells for 100:
- Profit:
100 − 60 = 40 - Margin:
40 ÷ 100 = 40% - Markup:
40 ÷ 60 = 66.7%
The same 40 of profit is a 40% margin but a 66.7% markup — identical money, different denominators.
| Cost | Price | Profit | Margin | Markup |
|---|---|---|---|---|
| 60 | 100 | 40 | 40.0% | 66.7% |
| 8 | 20 | 12 | 60.0% | 150.0% |
| 45 | 60 | 15 | 25.0% | 33.3% |
Practical tips
Price for margin, not markup. If you need to protect a 40% margin, applying a “40% markup” leaves you short — a 40% markup is only a 28.6% margin. Use the “Cost + Margin %” mode to price correctly.
Include all costs. For a true gross margin, put the fully loaded cost of the item (materials, direct labour, shipping in) into the cost box, not just the purchase price.
Compare products. Line up several items in the table above to see which carry the healthiest margins and which are quietly unprofitable.
All calculations run entirely in your browser — nothing is uploaded or stored.