Margin & Markup Calculator

Smart-Calcs
Finance & Business

Margin & Markup Calculator

Calculate profit margin and markup percentage from cost and selling price, or solve for any missing field with instant two-way recalculation.

Pricing Inputs

Currency

Cost
$
0 $100000 $
Selling Price (Revenue)
$
0 $100000 $
Profit
$
-50000 $100000 $
Margin %
%
-100 %100 %
Markup %
%
-100 %1000 %

Gross Margin

33.3%

Markup: 50.0%

Cost

$100.00

Revenue

$150.00

Profit

$50.00

Cost vs Profit Share of Revenue

Cost
Profit
$100.00 $50.00

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Overview

The Margin & Markup Calculator lets business owners, freelancers, and product managers convert freely between cost, selling price, profit, gross margin percentage, and markup percentage. Adjust any single value and every other field recalculates instantly, so you can model pricing scenarios without ever reaching for a spreadsheet.

Formula

The calculator uses the standard gross-profit relationships:

1. Profit = Selling Price − Cost
2. Margin % = (Profit / Selling Price) × 100
3. Markup % = (Profit / Cost) × 100
4. Selling Price from Markup = Cost × (1 + Markup %)
5. Selling Price from Margin = Cost / (1 − Margin %)

Practical Example

A retailer buys a product for $$40 and applies a 50% markup. The selling price becomes $$40 × 1.50 = $$60. Profit is $$20. The resulting margin is $$20 / $$60 × 100 = 33.3%. Reversing the scenario, targeting a 33.3% margin on the same $$40 cost yields a selling price of $$40 / (1 − 0.333) = $$60, confirming both paths agree.

Frequently Asked Questions

Margin (gross profit margin) is profit expressed as a percentage of the selling price: Margin % = (Price − Cost) / Price × 100. Markup is profit expressed as a percentage of the cost: Markup % = (Price − Cost) / Cost × 100. A 50% margin equals a 100% markup, so the two figures describe the same deal from different reference points.
Because the base each percentage is measured against differs. A 100% markup means you added the full cost again on top of cost, so the selling price is 2× cost. Half of that selling price is profit, which is a 50% margin. The markup denominator (cost) is always smaller than the margin denominator (price), so markup is always the larger number for the same transaction.
Use markup when you know your cost and want to add a standard multiplier to arrive at a price. Use margin when you are targeting a profitability goal as a share of revenue. Most financial reporting and investor conversations reference margin, while retail and wholesale pricing tables commonly reference markup.
To convert markup to margin: Margin % = Markup % / (1 + Markup %). To convert margin to markup: Markup % = Margin % / (1 − Margin %). For example, a 25% markup converts to a 20% margin, and a 33% margin converts to a roughly 49% markup.
Calculations based on official Google AdSense Terms and Revenue Documentation.Google AdSense Help
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Margin33.3%