Input parameters
- Cost
- Cost to produce or acquire the item.
- Revenue
- Selling price or sales revenue.
Margin Calculator
Calculate gross profit, profit margin, and markup from product cost and sales revenue. Use the results to distinguish margin as a percentage of revenue from markup as a percentage of cost.
There was an error with your calculation.
| Result | |
|---|---|
| Gross Margin | 36.00% |
| Markup | 56.25% |
| Gross Profit | $1,800.00 |
Understanding the Margin Calculator
Review the inputs, outputs, calculation method, and formulas used by this tool.
Understanding the results
- Profit
- Revenue remaining after cost.
- Margin
- Profit as a percentage of revenue.
- Markup
- Profit as a percentage of cost.
Calculation principle
Profit is the difference between revenue and cost; margin and markup use different bases for comparison.
- Read and validate the entered values.
- Convert percentages and time periods into compatible units.
- Apply the formulas below and present the calculated results.
Formulas
Profit
Profit = Revenue − Cost
Margin
Margin % = Profit / Revenue × 100
Markup
Markup % = Profit / Cost × 100
Symbols refer to the corresponding input and result labels shown above.
How to use this calculator
Enter your figures, choose any available options, and select Calculate. You can change the inputs as often as you like to compare scenarios.
Planning note
Results are estimates for education and planning. Taxes, lender rules, fees, and investment returns can vary, so verify important decisions with a qualified professional.