Business & CommerceBusiness
Profit Margin & Markup Calculator
Master your product pricing strategy. Calculate gross profit margins, markup percentages, and selling prices with side-by-side comparison.
Cost & Pricing
Gross Profit Margin
37.5%
Gross Profit: $30.00 per unit
Equivalent Markup on Cost:60%
Cost of Goods:$50.00
Revenue per Sale:$80.00
Mathematical Formula: Margin & Markup Formulas
Margin = (Profit / Revenue) × 100 | Markup = (Profit / Cost) × 100
Margin is profit relative to selling price; Markup is profit relative to cost.
How to Use This Calculator
- 1Enter the product or service cost of goods sold (COGS).
- 2Enter either your target selling price (Revenue) or desired profit margin percentage.
- 3The engine automatically calculates gross profit, margin %, and markup % simultaneously.
Practical Example: Wholesale to Retail Pricing
Scenario: Product cost is $50.00 and retail selling price is $80.00.
Cost:$50.00
Revenue:$80.00
Result: Gross Profit: $30.00 | Profit Margin: 37.50% | Markup: 60.00%
A 60% markup on cost produces a 37.5% gross profit margin on revenue.
Frequently Asked Questions
Because Markup divides profit by Cost (a smaller number), while Margin divides the same profit by Revenue (a larger number).
Pro Calculation Tips
- Remember: A 50% markup yields a 33.3% margin, while a 100% markup (keystone pricing) yields a 50% margin.
Model Assumptions
- Focuses on gross profit margin; does not deduct operating overhead (rent, utilities, payroll) for net margin.