Margin Calculator

Calculate gross profit margin and markup percentage

Cost & Price Details

Cost ($)

Selling Price ($)

Margin Results

Gross Profit Margin

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%

Profit as percentage of revenue

Markup Percentage

-

%

Price increase over cost

Gross Profit

-

$

Revenue minus cost

Margin Analysis

Industry Benchmarks

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Pricing Strategy

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This calculator helps determine your profit margins. Consider all business costs for accurate pricing. Print Results

1. What is a Margin Calculator?

A Margin Calculator is a financial tool that helps businesses and traders determine:
✔ Profit Margin (Gross, Operating, Net)
✔ Markup Percentage
✔ Selling Price based on cost and desired margin

It is essential for pricing strategies, profitability analysis, and financial planning.

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2. Key Margin Formulas

A. Gross Profit Margin

Measures profit after accounting for Cost of Goods Sold (COGS).

$$\text{Gross Margin (\%)}=\left(\frac{\text{Revenue}-\text{COGS}}{\text{Revenue}}\right)\times 100$$

Example:

• Revenue = $10,000

• COGS = $6,000

• Gross Margin = $\frac{10,000-6,000}{10,000}\times 100=\mathbf{\text{40\%}}$

B. Markup vs. Margin

Concept	Formula	Example (Cost = $60, Sell = $100)
Markup %	$\frac{\text{Sell Price}-\text{Cost}}{\text{Cost}}\times 100$	$\frac{100-60}{60}\times 100=\mathbf{\text{66.67\%}}$
Margin %	$\frac{\text{Sell Price}-\text{Cost}}{\text{Sell Price}}\times 100$	$\frac{100-60}{100}\times 100=\mathbf{\text{40\%}}$

(Markup is based on cost, while margin is based on revenue.)

C. Net Profit Margin

Accounts for all expenses (taxes, operating costs, interest).

$$\text{Net Margin (\%)}=\left(\frac{\text{Net Profit}}{\text{Revenue}}\right)\times 100$$

Example:

• Revenue = $10,000

• Total Expenses = $7,000

• Net Profit = $3,000

• Net Margin = $\frac{3,000}{10,000}\times 100=\mathbf{\text{30\%}}$

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3. How to Use a Margin Calculator (Step-by-Step)

1. Select Calculation Type:

   • Gross Margin

   • Markup %

   • Selling Price from Cost & Margin

2. Enter Values:

   • Cost Price (e.g., $50)

   • Selling Price (e.g., $80)

   • Desired Margin (e.g., 30%)

3. Click "Calculate" → Get Results:

   • Gross Margin = 37.5%

   • Markup = 60%