Calculate gross margin, markup, cost, price and profit from any two values.
Margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost.
Please do not make financial decisions based on these results.
What is the Margin Calculator?
The margin calculator finds gross margin, markup, cost, price and profit from any two of those values.
Pricing and profit
Margin and markup are often confused. Margin is profit as a share of the selling price, markup is profit as a share of cost. Use the ROI and profit margin calculator for return and margin.
How to use the Margin Calculator
- Fill in the fields. You will need Cost per unit ($), Selling price per unit ($), Quantity. Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Choose your options. I know… change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the Gross margin, and the cards below show Markup, Cost, Selling price. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Margin Calculator using the default values shown in the calculator above:
Inputs
| I know… | Cost and selling price |
|---|---|
| Cost per unit ($) | 60 |
| Selling price per unit ($) | 100 |
| Quantity | 1 |
Results
| Gross margin | 40% |
|---|---|
| Markup | 66.67% |
| Cost | $60.00 |
| Selling price | $100.00 |
| Profit per unit | $40.00 |
| Total revenue | $100.00 |
| Total profit | $40.00 |
With these inputs the calculator returns Gross margin: 40%. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Margin Calculator reports Gross margin, markup, cost, selling price, profit per unit, total revenue and total profit. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Margin vs markup?
Margin is profit as a share of price; markup is profit as a share of cost.
How do I convert markup to margin?
Margin = markup / (1 + markup). For a 25% markup, margin is 0.25 / 1.25 = 20%.
Can I rely on these for tax filing?
No. Use them for estimates and quick checks. For filings, use official forms and guidance or a professional.
Are the results exact?
They follow the stated formulas exactly. Real-world fees, taxes and rounding may differ slightly.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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