What is the difference between gross margin and markup?

Gross margin (or gross margin %) expresses profit as a percentage of revenue. Markup expresses profit as a percentage of cost. For example, if cost is $60 and revenue is $100, gross profit is $40, gross margin is 40% (40 / 100), and markup is 66.67% (40 / 60). The two numbers will always differ unless profit is zero.

How does the selling-price calculation work?

When you know your cost and the gross margin percentage you want to achieve, the selling price is: Revenue = Cost / (1 − Margin% / 100). For example, a $50 cost at a 40% target margin gives $50 / 0.60 = $83.33. A target margin of 100% or higher is mathematically impossible and is rejected by the calculator.

Is gross margin the same as net profit margin?

No. Gross margin only subtracts the direct cost of goods sold (COGS) from revenue. Net profit margin also subtracts operating expenses, taxes, interest, and other overhead. This calculator computes gross margin, which is the starting point before those additional costs are applied.

What does a negative gross profit mean?

A negative gross profit means your revenue is less than your cost — you are selling below cost. The calculator will display the negative values clearly so you can see how far below break-even the pricing sits.

Profit Margin Calculator

Name: Profit Margin Calculator
Availability: InStock
Author: Nham Vu

Enter cost and revenue to see gross profit, gross margin %, and markup %. Or flip to selling-price mode and enter a cost plus target margin to get the recommended selling price.

Profit Margin Settings

Calculation Mode

Enter cost and revenue to calculate gross margin and markup.

Currency

Cost (COGS)

Revenue (Selling Price)

Results

Live calculation

Enter your cost and revenue (or target margin) on the left to see results.

Gross Margin

of revenue

Gross Profit

$0.00

Gross Margin %

Markup %

Item	Value
Revenue (Selling Price)	—
Cost (COGS)	—
Gross Profit	—
Gross Margin %	—
Markup %	—

Formulas used

Gross Profit = Revenue − Cost Gross Margin % = (Gross Profit / Revenue) × 100 Markup % = (Gross Profit / Cost) × 100

Recommended Selling Price

$0.00

Gross Profit

$0.00

Target Margin

confirmed

Markup %

Item	Value
Cost (COGS)	—
Target Margin	—
Selling Price	—
Gross Profit	—
Markup %	—

Formula used

Selling Price = Cost / (1 − Target Margin% / 100) Gross Profit = Selling Price − Cost Markup % = (Gross Profit / Cost) × 100

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Summary

Enter cost and revenue to see gross profit, gross margin %, and markup %. Or flip to selling-price mode and enter a cost plus target margin to get the recommended selling price.

How it works

Choose a mode: "Find Margin" to calculate margin from cost and revenue, or "Find Selling Price" to calculate the price needed to hit a target margin.
In Find Margin mode, enter your cost and your revenue (selling price) in the input fields.
In Find Selling Price mode, enter your cost and your desired gross margin percentage.
Select the currency that matches your figures.
Click Calculate to see gross profit, gross margin %, markup %, and — in selling-price mode — the recommended selling price.
Click any copy button to copy a result to the clipboard.
Click Reset to clear all fields and start over.

Use cases

A retailer checking whether a product priced at $49.99 with a $28 cost delivers the target 40% margin.
A freelancer calculating the hourly rate needed to achieve a 60% profit margin on a project.
A small business comparing markup and margin on different product lines to optimize pricing strategy.

Frequently Asked Questions

Last updated: 2026-06-09 · Reviewed by Nham Vu