About this tool
Margin and markup both describe profit, but they use different bases, and mixing them up leads to underpriced products. Margin is profit as a share of the selling price. Markup is profit as a share of the cost.
Add one row per product with cost, selling price and quantity. The calculator shows per-product and combined gross profit, margin and markup, and warns when you are selling at a loss.
How to use the Profit Margin and Markup Calculator
- Type a product name (optional), its cost price, selling price and quantity.
- Use Add product for more items.
- Press Calculate.
- Read the combined totals and, when several products are entered, the per-product table.
Practical examples
How it works
Gross profit = (selling price - cost price) x quantity.
Margin % = gross profit / revenue x 100. Markup % = gross profit / cost x 100. For several products the totals are computed from summed revenue and cost, so higher-volume items weigh more.
Gross profit excludes overheads, taxes and shipping unless you include them in the cost price.
Privacy and file processing
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Frequently asked questions
Which should I use to set prices, margin or markup?
Either works if used consistently. Markup is quick for adding to cost; margin shows how much of each sale you keep.
Why is margin always lower than markup?
Margin divides by the larger number (the selling price), so it is smaller for any profitable sale.
Does it include GST?
No. Enter prices excluding tax for accurate profit figures.
Can I enter a loss?
Yes. Selling below cost produces negative profit and a warning.
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Results are for general information. Check important figures against official sources. Read the disclaimer.