Calculate gross profit margin and markup from cost and selling price
Profit Margin Calculator is a free online browser-based utility designed to calculate gross profit margin and markup from cost and selling price. All computations, processing, and rendering happen completely inside your browser client, ensuring your data is kept secure and private.
Profit margin = (selling price - cost) / selling price x 100. With a cost of 100 and a selling price of 150, profit is 50 and the margin is 50 / 150 x 100 = 33.33%. Enter cost and selling price in the tool and it shows profit, margin and markup together.
Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. The same 50 profit on a cost of 100 is a 33.33% margin but a 50% markup. Margin can never reach 100%, while markup has no upper limit.
Divide the cost by (1 - target margin). For a cost of 100 and a 40% margin, the price is 100 / 0.6 = 166.67. Use the Target Margin mode in the tool to get this and the matching markup, which is about 66.67%.
It works from cost price and selling price, so the margin shown is the gross margin on that item, before overheads, salaries, interest and taxes. Net or operating margin needs your wider business costs, which this tool does not take as inputs.
Yes. Choose Target Markup, enter the cost and markup percentage, and the price is cost x (1 + markup / 100). A 50% markup on 100 gives 150, which the tool also shows as a 33.33% margin.
It depends heavily on the industry. Retail, services and software often work with very different typical margins, so compare against businesses like yours rather than a single number. Also allow for overheads and taxes, which the gross margin shown here does not include.
No. Toolskyt operates under a zero-server policy. All calculations, data formatting, and file exports are executed locally on your machine.
No, this tool is 100% free. There are no limits, sign-ups, subscriptions, or hidden charges required.