Finance
Margin & Markup Calculator
Calculate gross margin, markup, profit, and selling price from any two inputs. Built for ecommerce and SaaS operators who need the answer in seconds.
Mode
$
$
Selling price
$15.00
Profit
$5.00
Margin
33.3%
Markup
50.0%
Revenue split
Price
$15.00
- Cost (COGS)67%· $10.00
- Profit33%· $5.00
How this is calculated
Margin vs markup — they're not the same
- Margin = profit ÷ revenue. Always < 100%.
- Markup = profit ÷ cost. Can exceed 100%.
Example: cost $10, sell $15 → profit $5. Markup = 5/10 = 50%. Margin = 5/15 = 33.3%. The same trade can be quoted as either — get this wrong and you give away your spread.
Use case: pricing from a margin target
Set the target margin (say 40%) and the cost ($10). Selling price = cost ÷ (1 − margin) = 10 ÷ 0.6 = $16.67.
Frequently asked
- Margin = profit ÷ revenue. Markup = profit ÷ cost. A 50% markup on a $10 cost = $15 price, which is a 33.3% margin — they are not the same.