Margin & Markup Calculator

Optimize your pricing strategy. Calculate gross margins, markups, and optimal selling prices instantly.

Cost to Produce $
Selling Price $
41.18% Gross Margin
70.00% Markup
Gross Profit
$35.00
Revenue Breakdown
Cost
Profit
Cost to Produce $
Target Strategy
Target Percentage %
Required Selling Price
$83.33
$33.33 Resulting Gross Profit

Margin vs. Markup: What's the difference?

These two terms are frequently confused in business, but they represent very different things. Mixing them up can lead to pricing errors and lost revenue.

  • Gross Margin: Shows the percentage of Revenue you get to keep as profit.
    Formula: (Profit ÷ Revenue) × 100
  • Markup: Shows how much you increased the Cost to arrive at the selling price.
    Formula: (Profit ÷ Cost) × 100

Example: If a product costs $50 to make and you sell it for $100, your profit is $50.
Your Markup is 100% (because you doubled your $50 cost).
But your Margin is 50% (because you kept half of the $100 revenue).