How it works
Calculate markup percentage, gross profit, and selling price from your costs.
A worked example
With a cost of 60 and a selling price of 100, profit is 40 and markup is 66.67%. Margin is 40% because it uses a different denominator.
Before you use the result
These calculations describe gross amounts. They do not automatically deduct overhead, payment fees, returns, tax, or financing costs. A gross profit or margin is not the same as net business profit.
Keep inputs on a consistent basis. Use the same currency and time period, and check whether your amounts include tax. Calculations use full precision internally; displayed monetary values are rounded to two decimals.
Questions, answered.
How is markup different from margin?
Markup divides gross profit by cost. Margin divides gross profit by selling price. At cost 60 and price 100, markup is 66.67% and margin is 40%.
What happens when cost is zero?
Markup is undefined because division by zero is undefined. The tool shows Not defined rather than a misleading 0%.
Does markup include overhead?
Only if you include overhead in your input cost. This tool does not automatically deduct other expenses.
Calculation methods: read our methodology. Found a problem? Send a correction.