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Profit Margin & Markup Calculator

Calculate gross profit, profit margin, markup and selling prices for target margins or markups.

The Profit Margin and Markup Calculator helps businesses understand the relationship between cost, selling price and profit. Enter cost and selling price to calculate gross profit, profit margin and markup. You can also enter a target margin or target markup to calculate the selling price required to achieve it.

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Understanding the tool

About Profit Margin & Markup Calculator

The Profit Margin and Markup Calculator helps businesses understand the relationship between cost, selling price, profit margin and markup. It can also work backwards from a desired margin or markup to calculate a suitable selling price.

How to use this tool

Enter the cost and selling price to calculate gross profit, margin and markup. Alternatively, enter a cost with a target margin or markup to calculate the required selling price.

A simple example

If an item costs $60 and sells for $100, the gross profit is $40, the profit margin is 40% and the markup on cost is 66.67%.

Before you use the result

Check that you have entered the values in the correct units and that the question you are answering matches the tool you selected. A calculator can produce a precise answer to the wrong question just as easily as the right one.

For important decisions

Use the result as a helpful calculation or estimate. Where money, tax, contracts, compliance or other high-impact decisions are involved, confirm the result against the relevant official information.

Features

  • Gross profit calculation
  • Profit margin percentage
  • Markup percentage
  • Selling price from target margin
  • Selling price from target markup
  • Business pricing support

Frequently asked questions

What is the difference between margin and markup?

Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost.

Can I calculate a selling price from a target margin?

Yes. Enter the cost and desired margin and the calculator determines the selling price needed to achieve that margin.

KingToolsKit provides general-purpose tools and information. Check important results independently when they affect financial, legal, medical or other high-impact decisions.

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