Margin Calculator
Calculate gross profit, profit margin, and markup percentage instantly. Free online margin calculator for businesses.
Edit margin to recalculate Revenue
Results Overview
Gross Profit
$ 50
Gross Margin
33.33%
Markup
50.00%
Margin vs Markup
Margin (Gross Margin) is the percentage of revenue that is profit:
Markup is the percentage applied to the cost price to reach the selling price:
Both describe the same profit in dollar terms, but as different percentages — use this tool to find your gross profit, margin, and markup instantly, and see how the two percentages diverge for your numbers.
How to Use It
Enter cost and revenue to calculate profit, margin, and markup — or enter cost and a target margin to find the revenue needed.
Example
A product costing $100 sold for $150 has a $50 gross profit, a 33.33% margin, and a 50% markup — the two percentages differ because margin is measured against revenue while markup is measured against cost.
Common Use Cases
- Setting a selling price that hits a target profit margin.
- Checking whether a markup percentage delivers the intended margin.
FAQs
Is markup the same as margin?
No — margin is profit as a percentage of revenue (the selling price), while markup is profit as a percentage of cost. For the same sale, markup is always the higher number because it's calculated on the smaller cost figure rather than the larger revenue figure. In the results panel above, "Gross Margin" and "Markup" are shown side by side for exactly this reason — a 33% margin and a 50% markup can describe the same $100-cost, $150-revenue sale.
How do I calculate margin percentage?
Margin percentage = (Revenue − Cost) ÷ Revenue × 100. Enter your Cost and Revenue in the fields above and the Gross Margin (%) field updates automatically — or edit the Gross Margin field directly with a target percentage to see the Revenue you'd need to charge to hit it.