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Margin and Markup Calculator

Calculate margin, markup, gross profit, and required selling price for ecommerce, retail, wholesale, and service pricing.

Pricing Inputs

Calculate margin and markup or reverse-calculate a selling price from a target percentage.

Pricing Result

$150.00

Gross Profit

$50.00

Margin

33.33%

Markup

50.00%

Ad Space - horizontal

Pricing Decisions Need Margin and Markup Clarity

Businesses often confuse margin and markup even though both are central to pricing, budgeting, and profitability. This calculator is optimized for searches like margin calculator, markup calculator, and gross profit margin calculator so you can move from cost to price quickly.

Use it to set retail prices, review profit on existing products, or reverse-engineer the price needed to hit a required target margin.

Margin and Markup FAQ

What is the difference between margin and markup?
Margin is profit divided by selling price, while markup is profit divided by cost. They are related but not interchangeable.
How do I calculate selling price from target margin?
Divide cost by 1 minus the target margin as a decimal. For example, a $60 cost with a 40% margin requires a $100 selling price.
Why is markup always higher than margin for the same product?
Markup is based on cost, and margin is based on selling price. Because selling price is larger than cost when profit exists, markup is usually the higher percentage.

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