Margin Calculator
Price a product, check your profit margin, or convert between margin and markup.
| Selling price | $100.00 |
|---|---|
| Profit | $40.00 |
| Gross margin | 40% |
| Markup | 66.67% |
How to use it
- Pick what you already know.
- Enter your cost per item.
- Enter the selling price, or the margin or markup percent you want; the price is worked out for you.
Formula
Profit = price − costMargin = profit ÷ price × 100Markup = profit ÷ cost × 100Price for a target margin = cost ÷ (1 − margin)
Example
An item that costs $60 and sells for $100 makes $40 profit: a 40% margin and a 66.67% markup. To get a 40% margin on a $60 cost, price it at 60 ÷ (1 − 0.40) = $100.00. A 50% markup on $60 is $90.00.
Questions
Margin vs markup?
Both use the same profit, but margin divides by the price and markup divides by the cost. A 50% markup is only a 33.33% margin.
Can margin be 100%?
Only if the cost is 0. Any real cost keeps margin under 100%, while markup can be any size.
Is this net margin?
No, it is gross margin on one item. Net margin also subtracts overhead, fees, shipping and taxes.
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Last reviewed 2026-10-11. Found a mistake? Tell us.