Profit Margin & Markup Calculator

Profit margin calculator: gross margin, markup and profit per unit from cost and selling price, or the price for a target margin.

m = price − costprice

How to use this calculator

  1. Choose the quantity you want under “Solve for”.
  2. Type the known values and pick their units: any combination works.
  3. The result updates as you type. Open “Show the steps” to see the substitution.

Gross margin is profit as a share of the selling price; markup is profit as a share of the cost. A product that costs $60 and sells for $100 has a 40 % margin but a 66.7 % markup.

Solve for the selling price to hit a target margin, or for the maximum cost you can accept at a given price.

Results are estimates for information only and do not constitute financial advice. Your lender’s or bank’s figures may differ.

Formula

m = price − costprice

SymbolQuantityUnits
CCost$, €, £
VSelling price$, €, £
mGross margin%, ×

Worked example

Given: C = 60.00 $ · V = 100.00 $

m = V − CV

Result: m = 40 %

Frequently asked questions

What price gives a 40 % margin on a $60 cost?

Price = cost ÷ (1 − margin) = 60 ÷ 0.6 = $100.

Margin vs markup: which should I use?

Margin is standard in financial statements and retail; markup is common when pricing from cost. They describe the same profit differently.

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