Margin & Markup Calculator

Profit Analyzer
Profit Metrics

Gross Margin: 0.0%

Markup: 0.0%

Net Profit ($): $0.00

Margin vs. Markup: What's the difference?

Many entrepreneurs mistake these two metrics, which can lead to underpricing products.

  • Gross Margin is the percentage of total revenue that is profit.
    Formula: (Price - Cost) / Price
  • Markup is the percentage added to the cost price to determine the selling price.
    Formula: (Price - Cost) / Cost

Example

If you buy a widget for $50 and sell it for $100:

  • Your Profit is $50.
  • Your Margin is 50% ($50 profit is 50% of the $100 price).
  • Your Markup is 100% ($50 profit is 100% of the $50 cost).