BUSINESS
Markup and margin calculator
Compare markup on cost, gross margin, profit per unit, total profit and target selling prices.
Neutral presentation is active.
No regional currency, unit or language profile is applied. This choice does not convert values or change formulas, results, routes or legal guidance.
Markup on cost
50%Gross margin: 33.33% · Profit per unit: $50.00- Total revenue
- $1,500.00
- Total profit
- $500.00
- Price for target margin
- $166.67
- Price for target markup
- $150.00
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Verification and calculation details
- Purpose
- Markup and margin calculator
- Variables and units
- Use the labelled fields and units shown in the calculator. Results use those units unless a conversion is stated.
- Formula and method
- The exact formula and worked example are shown below. Deterministic formula executed locally in the browser.
- Assumptions
- Only entered values and stated assumptions are included. Local fees, rules and professional requirements are excluded unless explicitly shown.
- Engine version
- 1.0.0
- Production verification baseline
- Release 63 · source
998803f - Verification run
release-v63-2026-09-20- Last verified
- — Automated release checks passing
Read the Calculation Standard · Report a calculation or source issue
How this calculator works
Profit = selling price − cost. Markup = profit ÷ cost × 100. Gross margin = profit ÷ selling price × 100. Selling price for a target margin = cost ÷ (1 − margin ÷ 100).
Variables and inputs
- Cost price
- Required numeric input. finite numeric value; calculator-specific validation applies.
- Selling price
- Optional numeric input. finite numeric value; calculator-specific validation applies.
- Units sold
- Optional numeric input. finite numeric value; calculator-specific validation applies.
- Target gross margin
- Optional numeric input. finite numeric value; calculator-specific validation applies.
- Target markup
- Optional numeric input. finite numeric value; calculator-specific validation applies.
How to interpret the result
The calculator returns gross profit per unit, markup percentage on cost, gross margin percentage on selling price, total profit for entered units, target price from markup or margin. Read each output against the assumptions you entered, compare alternatives one variable at a time, and use the result as an estimate rather than a promise.
Common mistakes to avoid
- Mixing units or entering a rate as a decimal when the field requests a percentage.
- Rounding intermediate values instead of the final displayed result.
- Leaving out a cost, timing rule or local requirement listed in the assumptions below.
Practical uses
Use the markup and margin calculator to check a real scenario, compare a changed assumption and explain the arithmetic before relying on a quote, specification or decision.
Worked example
If an item costs USD 100 and sells for USD 150, profit is USD 50, markup is 50% and gross margin is 33.33%. Selling 10 units produces USD 500 estimated gross profit before overheads.
Assumptions and limitations
- entered cost and selling price use the same currency and exclude tax unless the user includes it
- gross profit excludes overhead, finance costs, returns, discounts and other operating expenses
- results are estimates; confirm rates, prices, units and professional requirements that apply
Important notes
Results are estimates based on the values entered. Confirm rates, prices, units and professional requirements that apply in your location. Review the Answer Atlas Calculation Standard and corrections policy for formula, privacy and correction rules.
Frequently asked questions
What is the difference between markup and margin?
Markup compares profit with cost. Gross margin compares profit with selling price. A 50% markup on a $100 cost gives a $150 price, but the margin is 33.33%.
Can this calculate the price needed for a target margin?
Yes. Enter the cost and target gross margin to estimate the selling price needed before taxes, discounts, shipping or platform fees.
Does this include overhead or taxes?
No. It calculates gross pricing from the values entered. Add overhead, tax, marketplace fees and delivery costs separately when they apply.
Does selecting a currency convert my prices?
No. The currency selector changes labels and number formatting only. Enter cost and selling prices in the same currency; no exchange rate is fetched or applied.