Gross Margin, Markup & Profit Calculator
Calculate gross profit, margin percentage, and markup percentage from item cost and selling price. Solve in reverse: enter cost and desired margin to…
Calculation Formula
How to Use the Gross Margin, Markup & Profit Calculator
- 1 Choose your calculation mode: Cost + Price, Cost + Target Margin %, or Cost + Markup %.
- 2 Enter your unit Cost of Goods Sold (COGS).
- 3 Provide your Selling Price or target percentage.
- 4 Inspect Gross Profit, Margin %, and Markup % in real time.
Methodology & Algorithmic Standards
Gross Profit = Price | Cost. Profit Margin = (Gross Profit / Price) * 100. Markup = (Gross Profit / Cost) * 100. Reverse Target Price = Cost / (1 - (Margin % / 100)).
Frequently Asked Questions
What is the key difference between Margin and Markup? ▼
Profit Margin is the percentage of the selling price that is profit. Markup is the percentage added on top of your cost. A 50% markup equals a 33.3% margin.
How do I price an item to guarantee a 40% profit margin? ▼
Divide your product cost by 0.60. For example, if an item costs $60 to produce, selling it for $100 yields a 40% margin ($40 profit / $100 price).
Can I use this for digital services and SaaS? ▼
Yes! Simply use your direct service delivery cost or hosting cost per account as the Cost input.
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