Margin Calculator
Calculate gross profit margin percentage from cost and selling price.
Gross margin tells you what percentage of your selling price is actual profit after covering the cost of the item — a core number for pricing decisions in any product-based business.
Margin vs. markup — the distinction that trips people up
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. The same $20 profit on a $40 cost item is a 50% markup but only a 33% margin, because the percentages are calculated against different base numbers.
Frequently asked questions
What's a healthy gross margin?
It varies enormously by industry — compare against your specific industry benchmark, not a universal number.
Should I price based on margin or markup?
Either works as long as you're consistent about which one you're using.