Tool guide
How to use the Margin Calculator
The Margin Calculator separates gross profit, profit margin, and markup. Profit is selling price minus cost, margin divides profit by selling price, and markup divides profit by cost.
What this tool is useful for
- Calculate gross profit from cost and selling price.
- Compare margin with markup.
- Test potential prices before fees, tax, overhead, or returns.
Practical example
If an item costs $60 and sells for $100, gross profit is $40, margin is 40%, and markup is 66.67%. Margin and markup are not interchangeable.
Helpful tips
- Margin uses selling price as its denominator; markup uses cost.
- Include all relevant costs before treating the result as true business profit.
- A positive gross margin does not guarantee net profitability.
Related tools and next steps
Calculators, Finance Tools, Converters, All Tools
Frequently asked questions
What is profit margin?
Gross profit divided by selling price, multiplied by 100.
What is markup?
Gross profit divided by cost, multiplied by 100.
Why are margin and markup different?
They use different denominators, so the percentages differ even when cost and profit are identical.
https://wowwebtools.com/calculators/margin-calculator
