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Margin Calculator 2026 — Free Online Tool

Calculate gross profit margin %, markup % & target selling price.

Quick Answer

Gross Margin % = [(Selling Price - Cost Price) / Selling Price] × 100. Markup % = [(Selling Price - Cost Price) / Cost Price] × 100. Margin calculates profit relative to revenue, while markup calculates profit relative to cost.

Last updated: 2026-07-31 Editorially reviewed by PakDigitalz Editorial Team

Enter Cost & Pricing Values

Gross Margin
33.33%
of Selling Price
Markup
50.00%
over Cost Price
Gross Profit
$50.00
Profit Amount
Selling Price
$150.00
Revenue per Unit

Revenue Breakdown per Unit

Cost (67%)
Profit (33%)
Cost: $100.00Profit: $50.00Total: $150.00
Looking for detailed e-commerce P&L, net income, or taxes?View Full Profit & Loss Calculator

How to Use This Tool

  1. Select your calculation mode (Cost & Selling Price OR Cost & Desired Margin %).
  2. Enter your item Cost Price ($ or PKR).
  3. Enter either your Selling Price or your target Gross Margin %.
  4. Instantly view Gross Margin %, Markup %, Gross Profit Amount, and final Selling Price.

Formula & Specifications

Gross Margin % = (Selling Price - Cost) / Selling Price × 100 | Markup % = (Selling Price - Cost) / Cost × 100 | Selling Price = Cost / (1 - Margin % / 100)

About Margin Calculator

Calculate gross profit margin percentage, markup percentage, net profit amount, and target selling price. Essential tool for business owners, retailers, e-commerce sellers, and accountants.

Frequently Asked Questions

What's the difference between margin and markup?

Margin is profit calculated as a percentage of the Selling Price [Profit / Selling Price × 100], whereas Markup is profit calculated as a percentage of the Cost Price [Profit / Cost × 100]. A 50% markup equals a 33.3% gross margin.

How do I calculate target selling price from margin?

Formula: Selling Price = Cost / (1 - Desired Margin % / 100). For example, if cost is $100 and desired margin is 20%, Selling Price = $100 / (1 - 0.20) = $125.

Why is gross margin always lower than markup percentage?

Gross margin uses the larger Selling Price as the denominator, whereas markup uses the smaller Cost Price as the denominator, making markup percentage numerically higher.

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Expert Note

This tool uses the latest international formulas and rates. Results are for estimation purposes. For legal or financial decisions, consult a qualified professional. Built and maintained by the PakDigitalz team.

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