Margin calculator for profit, markup and target price
Enter revenue and cost to find profit, gross margin and markup, or enter cost and target margin to solve the required selling price.
Inputs used by this calculator
Margin Calculator uses the fields below. The starting values reproduce the page example; replace them with values from the same units and time period before using the result.
| Input | Starting example | Accepted value | How it is used |
|---|---|---|---|
| Calculation | Margin from revenue and cost | Margin from revenue and cost · Selling price from cost and target margin | Chooses which Margin Calculator method or unknown the engine evaluates. |
| Selling price or revenue | 100 | 0 to 1000000000000 | Supplies the selling price or revenue quantity used by the published equation or result breakdown. |
| Cost | 60 | 0 to 1000000000000 | Supplies the cost quantity used by the published equation or result breakdown. |
| Target margin (%) | 40 | 0 to 99.999999 | Supplies the target margin (%) quantity used by the published equation or result breakdown. |
Margin versus markup
Margin divides profit by revenue. Markup divides the same profit by cost, so the percentages differ whenever profit is nonzero.
Margin formulas
Gross profit is revenue less cost.
margin=(revenue−cost)/revenuemarkup=(revenue−cost)/costTarget selling price
To achieve a target margin, divide cost by one minus the margin decimal.
price=cost/(1−target margin)What cost should include
Use the cost definition relevant to the decision: product cost for gross margin, or a broader fully loaded cost for pricing analysis.
Limits of gross margin
Gross margin does not by itself show net profit. Payroll, rent, marketing, interest, taxes, returns and overhead can materially change the outcome.
What the Margin Calculator answers
Calculate gross profit, margin, markup and target selling price with a side-by-side breakdown of the related business measures.
Use Margin Calculator when you know Calculation, Selling price or revenue, Cost and Target margin (%) and need the relationship expressed by the published equation.
Margin and equivalent markup
| Margin | Equivalent markup |
|---|---|
| 10% | 11.11% |
| 20% | 25% |
| 33.33% | 50% |
| 40% | 66.67% |
| 50% | 100% |
Frequently asked questions
Is margin the same as markup?
No. Margin uses revenue as denominator; markup uses cost.
How do I calculate gross profit?
Subtract cost from revenue.
How do I price for 40% margin?
Divide cost by 0.60.
Can margin exceed 100%?
A standard positive-cost sales margin cannot reach or exceed 100%.
Does gross margin equal net profit?
No. Net profit includes operating and other expenses.
What question does this Margin Calculator answer?
Calculate gross profit, margin, markup and target selling price with a side-by-side breakdown of the related business measures.
What to keep in mind
Gross margin excludes operating expenses, financing, tax and other costs unless included in the cost input.
Results are rounded for display in US format, with money in dollars and cents; CSV exports keep full calculation precision. This is a calculation summary, not an official certificate.