Margin calculator

Profit Margin Calculator

How to use: Enter what the item costs you and the price you sell it for. You get profit, gross margin and markup.

Margin vs markup

Margin and markup both describe profit, but they use different bases. Gross margin is profit divided by the selling price. Markup is profit divided by the cost. They are easy to mix up, and mixing them up can lead to underpricing.

Example

If an item costs $40 and sells for $100, the profit is $60. The gross margin is 60% of the selling price, and the markup is 150% of the cost.

How sellers use it

Use the calculator to check whether a price covers your costs and leaves room for shipping, fees and ads. Remember this is gross margin, so it does not include rent, labor or taxes. Try a few prices to see how each change moves your margin.

Frequently asked questions

How do I set a price for a target margin?

Divide your cost by one minus the margin you want. For a 40% margin on a $60 cost, the price is $60 divided by 0.60, or $100.

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Estimates for education only, not financial advice.