Margin Calculator
Calculate profit margin, markup percentage, revenue, or cost for any product or business transaction.
Input Parameters
Results
Margin vs Markup
Margin = Profit ÷ Revenue × 100. Markup = Profit ÷ Cost × 100. A 40% margin is NOT the same as a 40% markup. A 40% margin means profit is 40% of the selling price; a 40% markup means price is 40% above cost (which is only 28.6% margin).
What is the Margin Calculator?
The Margin Calculator is an essential retail and wholesale business tool. It calculates the gross profit margin on a product, helping business owners determine the exact price they need to sell an item for to achieve a specific profit goal.
How It Works (Formula)
Margin is different from Markup. Markup is a percentage of the *cost*, whereas Margin is a percentage of the *revenue*. The tool subtracts the Cost of Goods Sold (COGS) from the Revenue, and divides that profit by the total Revenue.
$$ \text{Gross Margin \%} = \frac{\text{Revenue} - \text{Cost}}{\text{Revenue}} \times 100 $$
The fundamental equation for determining retail profitability.
How to Use It
Enter what the item costs you to manufacture or buy. Then, enter either the price you want to sell it for, OR the profit margin percentage you want to achieve. The calculator will automatically solve for the missing variable.