Markup & Margin Calculator
Calculate gross profit, markup percentage, and margin percentage from cost and selling price. Understand the relationship between markup and margin.
How to Use the Markup & Margin Calculator
- Enter the product cost.
- Enter the selling price.
- Click Calculate to see profit, markup %, and margin %.
Casos de Uso
- •Setting prices to achieve target gross margin.
- •Analysing product profitability across a catalogue.
- •Converting between markup and margin for reporting.
- •Comparing pricing strategies across product lines.
Fórmula
Profit = price − cost. Markup % = profit / cost × 100. Margin % = profit / price × 100.
Perguntas Frequentes
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by selling price. Both express the same profit as different percentages.
Which should I use for pricing?
Markup is easier when setting prices from cost. Margin is more useful for financial reporting and comparing to industry benchmarks.
How do I calculate the selling price from a target margin?
Selling price = cost / (1 − target margin%). For example, to achieve 40% margin: price = cost / 0.60.