Margin & Markup Calculator
Analyze gross profit margins and markups to determine the optimal pricing strategy for your products.
Pricing Details
Profit Margin
Margin vs. Markup Explained
What is Profit Margin?
Profit Margin is the ratio of profit to the selling price. It tells you what percentage of your selling price is pure profit: Margin = (Profit / Selling Price) * 100. A 33.3% margin means one-third of the selling price is profit.
What is Markup?
Markup is the ratio of profit to the original cost. It shows how much you increase the purchase price to arrive at the selling price: Markup = (Profit / Cost) * 100. If you buy for $100 and sell for $150, your markup is 50%.
Which Metric Should You Use?
Margins are typically used for overall business planning and financial reporting (since they represent profit relative to total sales), while markup is useful for day-to-day product pricing decisions.