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.

Enter Cost & Pricing Values

Cost PriceSelling Price

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

Select your calculation mode (Cost & Selling Price OR Cost & Desired Margin %).
Enter your item Cost Price ($ or PKR).
Enter either your Selling Price or your target Gross Margin %.
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. Understand the critical difference between margin (based on revenue) and markup (based on cost) to price products correctly and maximize profitability.

Frequently Asked Questions

What is the difference between gross margin and markup?

Gross Margin is profit expressed as a percentage of selling price: (Selling Price - Cost) / Selling Price × 100. Markup is profit expressed as a percentage of cost price: (Selling Price - Cost) / Cost × 100. A 50% markup is NOT the same as 50% margin — a 50% markup gives a 33.3% gross margin.

How do I calculate gross profit margin percentage?

Gross Profit Margin % = [(Selling Price - Cost Price) / Selling Price] × 100. For example, if you sell a product for $150 and it costs $100, the gross margin is [(150 - 100) / 150] × 100 = 33.33%.

How do I find the selling price from a desired margin percentage?

Use the formula: Selling Price = Cost Price / (1 - Desired Margin % / 100). For example, if your cost is $100 and you want a 40% margin: Selling Price = $100 / (1 - 0.40) = $100 / 0.60 = $166.67.

What is a good gross profit margin for a retail business?

Gross margin benchmarks vary by industry. Retail: 25–45%. Software/SaaS: 70–85%. Restaurants: 60–65% (on food cost). Manufacturing: 30–50%. E-commerce: 30–50%. A healthy retail margin should comfortably cover operating expenses and yield net profit.

What is the difference between gross profit margin and net profit margin?

Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue × 100. Net Profit Margin = Net Income / Revenue × 100, where net income accounts for all expenses including rent, salaries, taxes, and interest. Gross margin measures production efficiency while net margin measures overall business profitability.