Money & shopping
Margin & markup calculator
Distinguish gross margin from markup on cost.
A clear answer. Here’s how.
Gross profit = price − cost. Gross margin = profit ÷ price × 100; markup = profit ÷ cost × 100. Markup is undefined for zero cost. Excludes tax, overhead and other charges unless you include them in your inputs.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Cost per item
- 40
- Selling price per item
- 60
Example result
- Gross profit per item
- 20
- Gross margin
- 33.3333333333%
- Markup on cost
- 50%