Free calculator / Pricing

Margin vs. Markup Calculator

Find gross profit, profit margin, markup, and the sale price needed for a target margin. Calculated instantly in your browser.

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Current pricing
Gross profit per unit
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Gross margin—
Markup on cost—
Target sale price—
Target profit/unit—

Gross margin here uses only unit selling price and unit cost. It excludes tax, merchant fees, shipping, overhead and returns. Markup is undefined when unit cost is zero.

Learn the difference →

Two percentages with different denominators

Margin = (selling price − cost) ÷ selling price × 100. Markup = (selling price − cost) ÷ cost × 100. With a $60 cost and $100 selling price, gross profit is $40, margin is 40%, and markup is approximately 66.67%.

The target selling price formula is cost ÷ (1 − desired margin as a decimal). For zero unit cost, the result is zero; real businesses still need to account for overhead and other costs.