Free tool
Profit margin & markup calculator
Enter your unit cost and either a selling price or a target margin. We calculate gross profit, margin percentage and markup percentage.
- Selling price
- —
- Gross profit
- —
- Margin
- —
- Markup
- —
The formulas
Gross profit = price − cost. Margin = gross profit ÷ price. Markup = gross profit ÷ cost. To hit a target margin, set price = cost ÷ (1 − margin). Retailers usually think in margin; wholesalers and manufacturers often think in markup — this tool shows both so you don't mix them up.
Frequently asked questions
What is the difference between margin and markup?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 50% markup on a $10 cost gives a $15 price, which is a 33.3% margin.
How do I set a price from a target margin?
Price = cost ÷ (1 − target margin). For a $10 cost and a 40% target margin: 10 ÷ 0.6 = $16.67.
What is a healthy gross margin?
It varies widely by industry — grocery runs low single digits to teens, apparel and specialty retail often 45%–65%, hospitality food cost targets a 65%–75% margin. Compare to peers in your category.
More free tools
Want a processor that actually beats these numbers?
Tell us your volume and we’ll come back with two or three quotes to compare.