Margin & Markup Calculator
Quickly determine your gross profit, profit margin, and markup percentage to ensure your business pricing is on track.
Calculate Profit Margin & Markup
Cost (COGS)
Revenue (Sale Price)
Enter Cost and Revenue to calculate margins.
How the Margin Formula Works
Understanding the difference between margin and markup is critical for pricing:
Gross Profit
Gross Profit = Revenue - Cost
Gross Margin (%)
Margin = (Gross Profit ÷ Revenue) × 100
Markup (%)
Markup = (Gross Profit ÷ Cost) × 100
Frequently Asked Questions
What is Gross Margin?
Gross margin is the percentage of revenue you retain after accounting for the direct costs associated with producing the goods and services you sell (COGS). Formula: Margin = (Gross Profit ÷ Revenue) × 100.
What is the difference between Margin and Markup?
Margin shows your profit as a percentage of revenue, while Markup shows your profit as a percentage of your cost. A 50% markup on a $100 item makes the price $150. The profit is $50. The margin is $50 ÷ $150 = 33.3%.
How do I use this margin calculator?
Simply enter your Cost of Goods Sold (COGS) and the Revenue (Sale Price). The calculator will instantly show your gross profit in currency, your gross margin percentage, and your markup percentage.
Last updated: June 2025