Margin Calculator
Enter your cost and selling price. Get gross margin %, markup %, and profit per sale instantly. The clearest margin calculator on the web — with a side-by-side margin vs markup table so you never confuse them again.
Quick answerGross margin = (selling price − cost) ÷ selling price. Example: a $30 item that costs you $20 has a $10 profit and a 33.3% gross margin (which is a 50% markup on cost).
Your numbers
Edit any field — results update as you type.
$
$
Gross margin
33.3%
$10.00 profit on every sale.
Profit per sale
$10.00
Markup
50.0%
Quick check: margin and markup look similar but mean different things. A 50% markup is only a 33% margin. If your margin is unexpectedly low, check whether you've been thinking in markup instead.
How to calculate margin
Subtract cost from selling price to get profit. Divide profit by selling price. Multiply by 100 for a percentage. ($30 − $20) ÷ $30 × 100 = 33.3% gross margin.
Margin vs markup, side by side
| Markup | Margin | $20 cost → price |
|---|---|---|
| 20% | 16.7% | $24.00 |
| 25% | 20% | $25.00 |
| 50% | 33.3% | $30.00 |
| 75% | 42.9% | $35.00 |
| 100% | 50% | $40.00 |
| 150% | 60% | $50.00 |
| 200% | 66.7% | $60.00 |
Frequently asked
Related calculators
Methodology
Formula
margin = (price − cost) ÷ price
Assumptions
- Cost is fully loaded (materials, labor, overhead, packaging).
- Price excludes sales tax and platform fees.
- Margin is gross — operating expenses are not subtracted.
Last reviewed: 2026-05-14
Last updated: 2026-05-14