Calculate gross profit margin, markup percentage, and selling price from cost and revenue. Includes markup vs margin explainer and industry benchmarks.
This free profit margin and markup calculator turns the relationship between cost, selling price, and profit into clear percentages. Enter any two values and it instantly returns your gross profit, profit margin, markup percentage, and cost ratio — or works backwards from a target margin or markup to give you the selling price you should charge.
It is built for anyone who needs to price confidently or check that a sale actually makes money. People use it to:
Everything runs locally and in-browser — your cost and revenue figures never leave your device, nothing is uploaded or stored, and the tool works the same whether you are online or offline.
Margin is profit divided by revenue (the selling price), while markup is profit divided by cost. Because cost is always smaller than revenue, the markup percentage is always higher than the margin percentage for the same product. Example: cost $60, price $100, profit $40 gives a 40% margin but a 66.7% markup.
Gross profit margin = (Revenue − Cost of Goods Sold) ÷ Revenue × 100. For example, if you sell for $100 and your COGS is $60, the gross profit is $40 and the gross margin is $40 ÷ $100 × 100 = 40%.
To turn markup into margin: margin = markup ÷ (1 + markup), using decimals. To turn margin into markup: markup = margin ÷ (1 − margin). For example, a 50% markup equals 0.5 ÷ 1.5 = 33.3% margin, and a 40% margin equals 0.4 ÷ 0.6 = 66.7% markup.
It depends heavily on your industry. SaaS and software typically achieve 60–80% gross margins, services around 30–60%, retail roughly 20–50%, and manufacturing usually 10–30%. Compare against your own sector rather than a single universal target.
Gross profit margin = (Revenue − COGS) ÷ Revenue × 100 and only accounts for the direct cost of goods. Net profit margin = Net Income ÷ Revenue × 100 and is calculated after all operating expenses, interest, and taxes. This tool calculates gross margin, so subtract your overhead separately to find net.
Divide the cost by (1 − target margin) expressed as a decimal. For a $60 cost and a 40% target margin, the price is $60 ÷ (1 − 0.40) = $60 ÷ 0.60 = $100. The Cost + Margin% mode does this automatically.
No. Gross margin is profit as a share of revenue, so it can never exceed 100% — that would require a cost below zero. Markup, however, can easily exceed 100% because it is measured against cost; a $20 item sold for $60 has a 200% markup but only a 66.7% margin.