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Finance

Margin Calculator

Calculate profit margin, markup, revenue, and cost. Find gross margin percentage and selling price for any product or service.

What is Margin Calculator?

The Margin Calculator helps you find gross profit margin, markup percentage, selling price, or cost — depending on which values you know. It is a quick tool for pricing products, evaluating profitability, or checking whether a deal meets your margin targets.

How to use

  1. 1 Select the mode: Find Margin (know cost and price), Find Price (know cost and target margin), or Find Cost (know price and target margin).
  2. 2 Enter the two values required for your selected mode.
  3. 3 The calculator instantly shows cost, revenue, gross profit, gross margin percentage, and markup percentage.

Formula

Gross Margin = (Price - Cost) / Price x 100. Markup = (Price - Cost) / Cost x 100. To find price from margin: Price = Cost / (1 - Margin%). To find cost from margin: Cost = Price x (1 - Margin%).

Example calculation

A product that costs $80 and sells for $100 has a gross profit of $20, a gross margin of 20%, and a markup of 25%. Note that margin and markup percentages always differ — margin is calculated on revenue, markup on cost.

Frequently asked questions

What is the difference between margin and markup?

Margin is gross profit divided by revenue (selling price). Markup is gross profit divided by cost. A 25% markup equals a 20% margin. Confusing the two can lead to serious pricing errors.

What is a good profit margin?

It depends heavily on the industry. Grocery retail might target 2-5% net margin, while software businesses often exceed 70% gross margin. Compare your margin to industry benchmarks rather than a universal standard.

How do I set a selling price to hit a target margin?

Use the Find Price mode. Enter your cost and the margin percentage you need, and the calculator computes the required selling price. For example, a $50 cost with a 40% target margin requires a $83.33 selling price.

Does this calculate net margin or gross margin?

This calculator computes gross margin — revenue minus the direct cost of goods sold. Net margin also subtracts operating expenses, taxes, and interest, which are not included here.

Why is my markup percentage higher than my margin?

Markup is always higher than margin at any given profit level because markup divides by cost (a smaller number) while margin divides by price (a larger number). This is mathematically guaranteed.