Profit Margin & Markup Calculator - Gross Margin vs Markup %

Calculate gross profit, profit margin percentage, and markup percentage from Cost of Goods Sold (COGS) and Revenue, or find your target selling price.

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⚙️ Configuration & Inputs
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📊 Results & Analysis
Gross Profit Margin
40.00%
+$30.00 Gross Profit per unit
Product Cost (COGS)$45.00
Selling Price (Revenue)$75.00
Gross Profit+$30.00
Profit Margin (%)40.00%
Markup Percentage (%)66.67%
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Profit Margin vs. Markup: The Crucial Difference

Many business owners confuse Margin and Markup, leading to severe underpricing:

A product that costs $50 and sells for $100 has a 50% Margin, but a 100% Markup!

Frequently Asked Questions

Formula: Price = Cost ÷ (1 - Margin). For a $50 cost with a 50% target margin: $50 ÷ (1 - 0.50) = $100.
For retail and e-commerce, gross margins typically range from 40% to 60%, while net profit margins after all overhead and taxes generally average 10% to 20%.