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.

⚙️ Configuration & Inputs

Cost of Goods Sold (COGS)Wholesale or production cost

Selling Price (Revenue)

📊 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%

Profit Margin vs. Markup: The Crucial Difference

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

Profit Margin: Percentage of selling price that is profit: (Revenue - Cost) ÷ Revenue
Markup: Percentage added on top of cost: (Revenue - Cost) ÷ Cost

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%.