Margin & Markup Calculator
Calculate gross profit margins, markups, and optimal sales pricing for your business.
$ 0.00
$ 0.00
How To Use
Why Use This Tool?
Frequently Asked Questions
Margin (Gross Margin) is your profit represented as a percentage of the Selling Price (Revenue). Markup is your profit represented as a percentage of the Cost. A 20% markup will always result in a lower profit amount than a 20% margin.
Retailers and large businesses typically use Margin because it relates directly to the top-line revenue on financial statements. Small manufacturers or service providers often use Markup because it is easier to add a straight percentage on top of material costs.
No, Gross Margin can never reach or exceed 100% (unless your cost is absolutely zero). However, Markup can be well over 100% (e.g., buying a product for $10 and selling it for $30 is a 200% Markup, but a 66.6% Margin).