Margin Calculator

Instantly calculate your gross profit margin and markup percentage. Input any two variables to find the third.

Enter any two values below and click "Calculate" next to the blank field to find the missing value.

Margin vs. Markup: The #1 Retail Mistake

The most common pricing mistake new business owners make is confusing margin with markup. Understanding the difference is critical to ensuring your business actually turns a profit.

Margin (Gross Margin)

Margin is your profit as a percentage of your revenue. It answers the question: "For every dollar I make in sales, how much is actually profit?"

Markup

Markup is your profit as a percentage of your costs. It answers the question: "How much did I increase the price of this item above what I paid for it?"

An Example

Imagine you buy a product wholesale for $50 and sell it for $100. Your raw profit is $50.

  • Your Markup is 100%, because you increased the $50 cost by 100% ($50).
  • Your Margin is 50%, because your $50 profit makes up exactly half of your $100 revenue.

If you want a 50% profit margin, you must apply a 100% markup. Many business owners aim for a 50% margin, mistakenly apply a 50% markup (selling the item for $75), and end up with only a 33% profit margin! Our calculator prevents this mistake.