Margin Calculator
Calculate gross profit, gross margin percentage, and markup percentage from cost and selling price.
How it works
Profit = selling price − cost. Margin% = profit ÷ selling price × 100. Markup% = profit ÷ cost × 100.
Formula / calculation method
profit = selling price − costmargin % = profit ÷ selling price × 100markup % = profit ÷ cost × 100
Worked examples
- A cost of 60 and selling price of 100 gives profit of 40 and a 40% margin.
- The same example has a markup of 66.67% because markup is measured against cost rather than selling price.
When this tool helps
Useful for retail, quoting, product profitability checks, pricing reviews, and comparing gross margin with markup.
Related calculations: ratio calculator, percentage calculator, and percentage change.
Browse this topic: Percentage, Ratio & Finance Calculators · Percentage & Finance Formula Guide.
Quick reference
| Input | Result |
|---|---|
| Cost 60 · price 100 | Profit 40 |
| Profit 40 ÷ price 100 | Margin 40% |
| Profit 40 ÷ cost 60 | Markup 66.67% |
Accuracy and definitions
This is a gross arithmetic calculation before taxes, overhead allocations, payment fees, returns, or other business expenses unless those amounts are included in the cost you enter.
Methodology & verification
- Method
- Profit = selling price − cost. Margin% = profit ÷ selling price × 100. Markup% = profit ÷ cost × 100.
- Verification
- The displayed formula is cross-checked against Solveberry regression cases before release. Calculator inputs and results stay in the browser.
- Last reviewed
- 2026-08-19
Results are calculated locally in your browser. Optional analytics do not include calculator input values or results.
Common questions
Why is margin lower than markup?
Margin divides profit by selling price, while markup divides profit by cost. The denominators are different.
Can margin be negative?
Yes. If selling price is below cost, profit and margin are negative.
Can I use decimal values?
Yes. The calculator accepts decimal values where they are mathematically valid for the selected calculation.
How should I verify an important result?
Use the displayed formula to reproduce the calculation independently, especially before making financial, legal, engineering or other consequential decisions.