Business Profit Margin & Markup Calculator
Compute gross profit margins, cost markups, and final sales revenue. Set target margins to dynamically reverse-engineer your product pricing structure.
This profit-margin page is tuned for gross margin analysis: selling price, COGS, gross profit, and target margin pricing. Use markup fields when you need cost-based pricing as a secondary check.
Reverse Price Finder
Pricing & Margin Summary
Gross Profit
Frequently Asked Questions
What is the difference between Margin and Markup?
Margin is the ratio of profit to the selling price. Markup is the ratio of profit to the cost price. For example, if an item costs $60 and sells for $100, the profit is $40. The margin is 40% ($40/$100), and the markup is 66.7% ($40/$60).
Why is Margin always lower than Markup?
Because the denominator for margin is the selling price (which is larger than the cost), whereas the denominator for markup is the cost. As price increases, markup can grow infinitely, but margin can never reach 100% (unless cost is zero).
How do I calculate price based on a target margin?
To find the selling price for a target margin: Price = Cost ÷ (1 - Margin Rate). For example, if cost is $50 and you want a 40% margin: $50 ÷ 0.6 = $83.33.