Margin Calculator - Calculator See


Margin Calculator

Calculate gross profit margin, markup percentage, and gross profit in dollars from product cost and selling price.

Calculator Inputs

$
Production or acquisition cost.
$
Retail selling price.

Calculated Results

Gross Profit Margin
40.00%
Gross Profit ($) $40.00
Markup Percentage (%) 66.67%
Cost of Goods Sold (COGS) $60.00 (60% of Revenue)
Values calculate live as you adjust inputs.

About Margin Calculator

A profit margin calculator computes the percentage of revenue remaining after subtracting Cost of Goods Sold (COGS), distinguishing profit margin from markup percentage.

What is Margin Calculator?

A profit margin calculator computes the percentage of revenue remaining after subtracting Cost of Goods Sold (COGS), distinguishing profit margin from markup percentage.

How to Use This Calculator

  1. Enter product unit cost (COGS).
  2. Enter target retail selling price.
  3. Analyze gross profit margin percentage and corresponding markup percentage.

The Mathematical Formula & Variables

Profit = Revenue - Cost; Margin% = (Profit / Revenue) * 100; Markup% = (Profit / Cost) * 100

Variables Definition

Symbol / Variable Name Description
Margin Profit as % of Revenue Portion of sales dollar that is pure profit.
Markup Profit as % of Cost Percentage added to cost to reach selling price.

Step-by-Step Worked Example

Scenario: Product costs $60.00 and sells for $100.00.

  1. Gross profit = $100.00 - $60.00 = $40.00.
  2. Margin = ($40.00 / $100.00) * 100 = 40.0%.
  3. Markup = ($40.00 / $60.00) * 100 = 66.67%.

Result: Margin: 40% | Markup: 66.7%

Frequently Asked Questions

Why is margin always lower than markup for the same transaction?

Margin divides profit by the selling price (a larger denominator), whereas markup divides profit by cost (a smaller denominator). A 50% margin requires a 100% markup.