Business
Markup and margin calculator
See the profit inside a price—and stop confusing markup with gross margin.
Markup measures profit against cost. Margin measures profit against the selling price. They are not the same percentage.
Gross profit per sale
$40.00
A 66.67% markup produces a 40% gross margin.
This calculation excludes taxes, payment fees, overhead, discounts, returns, and other operating costs.
Plain-language method
Markup and margin use different starting points.
Markup compares profit with cost. Gross margin compares the same profit with selling price. That is why a 50% markup does not produce a 50% margin.
Use the result as a starting point, then account for overhead, taxes, discounts, and transaction costs.
Results update instantly and stay on your device. Review the assumptions above before using an estimate for a financial decision.