Profit Margin & Markup Calculator
Profit margin calculator: gross margin, markup and profit per unit from cost and selling price, or the price for a target margin.
m = price − costprice
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
Gross margin is profit as a share of the selling price; markup is profit as a share of the cost. A product that costs $60 and sells for $100 has a 40 % margin but a 66.7 % markup.
Solve for the selling price to hit a target margin, or for the maximum cost you can accept at a given price.
Results are estimates for information only and do not constitute financial advice. Your lender’s or bank’s figures may differ.
Formula
m = price − costprice
| Symbol | Quantity | Units |
|---|---|---|
| C | Cost | $, €, £ |
| V | Selling price | $, €, £ |
| m | Gross margin | %, × |
Worked example
Given: C = 60.00 $ · V = 100.00 $
m = V − CV
Result: m = 40 %
Gross margin for different values of Cost
| C · Cost | m · Gross margin |
|---|---|
| 30.00 $ | 70 % |
| 45.00 $ | 55 % |
| 54.00 $ | 46 % |
| 60.00 $ | 40 % |
| 66.00 $ | 34 % |
| 75.00 $ | 25 % |
| 90.00 $ | 10 % |
| 120.00 $ | -20 % |
Other values as in the worked example.
Frequently asked questions
What price gives a 40 % margin on a $60 cost?
Price = cost ÷ (1 − margin) = 60 ÷ 0.6 = $100.
Margin vs markup: which should I use?
Margin is standard in financial statements and retail; markup is common when pricing from cost. They describe the same profit differently.
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