Enter cost and revenue (or profit) to automatically calculate gross margin, markup percentage, and profit. Perfect for e-commerce and business.
Using the Margin Calculator is straightforward:
Profit Margin measures what percentage of revenue is profit. Gross Margin formula: (Revenue - Cost) / Revenue Γ 100%. Example: Selling $100, Cost $60, Margin = (100-60)/100 = 40%. This tool calculates both margin and markup.
Margin is based on selling price: (Price-Cost)/Price. Markup is based on cost: (Price-Cost)/Cost. Example: Cost $60, Price $100: Margin=40%, Markup=66.7%. They're easily confused but have different values.
Good margins vary by industry: Retail 10-30%, Restaurant 30-50%, Software/SaaS 60-80%. Consider: industry averages, operating costs, competition, and brand positioning. This tool helps you work backward to find the right price.
Yes, it uses standard financial formulas. Enter any two values (cost, price, margin, markup) and the tool automatically calculates all other parameters. Ideal for e-commerce pricing and product cost analysis.