How to use the Margin Calculator
The margin calculator shows profit margin and markup from your cost and selling price.
What you need to enter
- Cost ($)
- Selling price ($)
The formula
Margin = (price − cost) ÷ price. Markup = (price − cost) ÷ cost.
Worked example
Using the default values in the calculator:
- Cost ($): 60
- Selling price ($): 100
| Gross margin | 40% |
| Markup | 66.67% |
| Profit | $40.00 |
Tips for better results
- Margin and markup are different, so do not mix them.
- Price from a target margin: price = cost ÷ (1 − margin).
Common mistakes to avoid
- Calling a 50% markup a 50% margin.
- Forgetting overheads.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.