Markup
66.67%
Margin and Markup Calculator
Calculate gross margin and markup percentage from cost and price.
Gross Margin
40.00%
Profit
$40.00
How to use the Margin and Markup Calculator
The Margin and Markup Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Cost — a dollar amount.
- Selling Price — a dollar amount.
The formula
Margin and markup describe the same profit against different bases. Margin measures it against the selling price; markup measures it against the cost:
Profit = Price − Cost
Margin = Profit ÷ Price Markup = Profit ÷ Cost- Profit
- selling price minus cost
They're easy to confuse but never equal (except at zero). Because cost is smaller than price, markup is always the larger percentage — a 50% margin is a 100% markup. Quoting one when you mean the other is a common pricing mistake.
Worked example
Using the example values — Cost $60.00, Selling Price $100.00 — the Margin and Markup Calculator returns a Gross Margin of 40.00%. It also reports Markup (66.67%), Profit ($40.00).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Gross margin
- Profit as a percentage of the selling price.
- Markup
- Profit as a percentage of the cost.
- Cost of goods
- What the item cost you — the base for markup.
Frequently asked questions
What's the difference between margin and markup?
The base. Margin is profit ÷ price; markup is profit ÷ cost. Same profit, different denominator — so the percentages differ.
Why is markup always bigger than margin?
Because cost is less than price, and the smaller denominator yields a larger percentage. A 50% margin equals a 100% markup.
Which should I use to set prices?
Markup is handy for pricing up from a known cost; margin is what shows on financial statements. Know which one a supplier or report means before comparing.