Margin Calculator

Calculate gross margin, net margin, and markup — and convert between margin and markup.

Enter Prices

Profit

₹200

Margin %

33.33%

Markup %

50%

Margin Calculator Formula & How It Works

Gross Margin% = (Revenue − COGS) / Revenue × 100 | Markup% = (Revenue − Cost) / Cost × 100
  • Margin is calculated on selling price (revenue)
  • Markup is calculated on cost
  • Relationship: Margin = Markup / (1 + Markup)
  • Net Margin = Net Profit / Revenue × 100

Margin and markup are related but different. A 50% markup on $100 cost = $150 price, but that's only a 33.3% gross margin. A 50% gross margin on $150 price = $75 cost = 100% markup. Always clarify which metric is being discussed: retail focuses on margin; manufacturing often uses markup.

Margin Calculator FAQs

What is the difference between margin and markup?

Margin = (Price − Cost) / Price × 100. Markup = (Price − Cost) / Cost × 100. Same profit amount, different base. A $30 profit on $100 price = 30% margin. Same $30 profit on $70 cost = 42.9% markup.

What is a good gross margin?

Gross margins vary greatly by industry: Software/SaaS 60–80%, Retail 25–50%, Restaurants 60–70% (before labour), Manufacturing 20–35%, Grocery 20–25%. Compare to industry benchmarks, not absolute targets.

How do I calculate selling price from cost and desired margin?

Selling Price = Cost ÷ (1 − Margin%). For a 40% gross margin on $60 cost: Price = $60 ÷ (1 − 0.40) = $60 ÷ 0.60 = $100. This ensures the margin is 40% of the selling price, not the cost.

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