Free & Instant
Margin Calculator
Calculate gross profit margin from your cost price and selling price instantly.
Margin Calculator
Enter your cost and selling price to calculate margin.
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Margin Breakdown
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Gross Profit
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Gross Margin
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Markup
How Margin Is Calculated
Gross margin measures profit as a percentage of the selling price, not the cost — this is the key distinction between margin and markup, and it's easy to mix them up. A 50% margin and a 50% markup describe two very different prices, so it's worth checking which one your pricing strategy actually needs.
Formula Used
Gross Profit = Selling Price − Cost
Gross Margin (%) = (Gross Profit ÷ Selling Price) × 100
Markup (%) = (Gross Profit ÷ Cost) × 100
Frequently Asked Questions
Is margin the same as markup?+
No. Margin is profit divided by selling price. Markup is profit divided by cost. The same dollar profit produces a lower margin percentage than markup percentage, since selling price is always higher than cost.
What's a healthy gross margin?+
It varies heavily by industry. Retail often runs 20–50%, software and services can exceed 70%, while wholesale and distribution typically sit in the 10–25% range.