Margin Calculator Classic
Enter your cost and selling price to instantly calculate gross profit, profit margin, and markup percentage.
What this margin calculator does
This classic margin calculator compares your cost and selling price to show your gross profit, your profit margin (profit as a percentage of selling price), and your markup (profit as a percentage of cost) all at once.
How margin and markup differ
Gross profit is simply selling price minus cost. Profit margin divides that profit by the selling price, showing what share of each sale is profit. Markup instead divides profit by the cost, showing how much you added on top of what the item cost you. These two percentages are always different unless cost is zero, and mixing them up is a common pricing mistake.
- Margin percentage is always lower than markup percentage for the same profit amount.
- Both figures are based only on the numbers you enter and do not include other business costs like overhead or shipping.
This tool is for general business planning and educational purposes only.