Margin Calculator
Calculate gross margin, markup, and selling price.
Gross margin
40.0%
Profit
$40.00
Markup
66.7%
Margin ≠ markup
Margin divides profit by the selling price; markup divides it by cost. A $60 cost sold at $100 is a 40% margin but a 66.7% markup. Mixing them up misprices products — a '50% markup' yields only a 33% margin.
Setting price from a target margin
To hit a target margin, divide cost by (1 − margin): a $60 cost priced for a 40% margin is 60 ÷ 0.6 = $100. Pricing by adding a percentage to cost (markup) systematically undershoots the margin you named.
Frequently asked questions
- How does the Margin Calculator work?
- Calculate gross margin, markup, and selling price.
- Is the Margin Calculator free to use?
- Yes. The Margin Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.
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