Margin Calculator
Compare gross profit, margin and markup without confusing their denominators.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Margin Calculator
Enter a cost and the associated revenue for the same item or activity. Decide which costs belong in the comparison before using the percentage; product gross margin often uses cost of goods sold rather than every business expense. Markup answers how far the selling price sits above cost, while margin answers how much of revenue remains after that cost.
The calculation
Worked example
With a $60 cost and $100 selling price, profit is $40. Margin is 40%, while markup is 66.6667%. Both describe the same sale using different denominators.
Assumptions and limits
Revenue must be positive. When cost is zero, margin is defined but markup on cost is undefined and is shown that way. A cost above revenue produces a negative profit and margin. The calculator does not model overhead, sales tax, financing cost or accounting classifications unless you include those amounts in your entered cost.
Common questions
Does a 50% markup give a 50% margin?
No. A $100 cost with 50% markup sells for $150, producing a margin of $50/$150, or 33.3333%.
Why is markup undefined at zero cost?
Markup divides by cost. Division by zero does not yield a finite percentage.