Margin Calculator
100% in your browser — nothing is uploadedGross margin
40.0%
$40.00 profit per unit
Margin and markup are routinely confused: a 50% markup is only a 33.3% margin. Mixing them up is one of the most common ways small businesses underprice.
Margin and markup answer different questions, and confusing them quietly destroys pricing. Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup sounds generous but is only a 33% margin — price a whole catalog on the wrong one and the gap compounds into real money. This calculator shows both side by side so the distinction is never hidden.
It works in both directions: enter cost and selling price to analyze what you're earning today, or enter cost and a target margin to get the exact price that achieves it.
How to use the margin calculator
- Choose a direction: analyze an existing price, or find a price from a target margin.
- Enter your unit cost.
- Enter the selling price (or the margin you want).
- Read profit, margin, and markup together.
Frequently asked questions
What's the difference between margin and markup?
Margin = profit ÷ selling price. Markup = profit ÷ cost. Selling at $100 what costs $60 gives a 40% margin but a 66.7% markup — same dollars, different denominators.
What's a good gross margin?
It's industry-specific: groceries run 1–3% net, software often 70%+ gross, restaurants typically 60–70% gross on food but far less net. Compare against your industry's benchmarks, not a universal number.
Why can't I enter a 100% margin?
A 100% margin would mean the entire price is profit — cost of zero. The price-from-margin formula divides by (1 − margin), which approaches infinity as margin approaches 100%.