What's the formula for gross profit margin?

Margin % = (selling price − cost) ÷ selling price × 100. Unlike markup, margin is profit as a percentage of the selling price, not the cost.

How is margin different from markup?

Margin divides profit by price; markup divides profit by cost. A $50 cost item sold for $75 has a 50% markup but only a 33.3% margin — the two numbers describe the same sale differently. Use the Markup Calculator for the cost-based version.

What's a healthy profit margin?

It varies widely by industry — retail often runs 20-50%, software and services can be much higher, while grocery and wholesale margins are often in the single digits. Compare to your specific industry's benchmarks rather than a universal target.

Is my pricing data sent anywhere?

No. All calculations run locally in your browser with JavaScript — nothing is transmitted or stored.

MARGIN CALCULATOR

Calculate margin, price, or cost from any two of the three. Nothing leaves your browser.

Cost

Margin (%)

Cost50.00

Margin30%

Selling price71.43

Profit21.43

How to use the margin calculator

1
Choose which two values you know: cost & margin, cost & price, or price & margin.
2
Enter those two values.
3
Read the missing value, plus the resulting profit.

Questions

What's the formula for gross profit margin?: Margin % = (selling price − cost) ÷ selling price × 100. Unlike markup, margin is profit as a percentage of the selling price, not the cost.
How is margin different from markup?: Margin divides profit by price; markup divides profit by cost. A $50 cost item sold for $75 has a 50% markup but only a 33.3% margin — the two numbers describe the same sale differently. Use the Markup Calculator for the cost-based version.
What's a healthy profit margin?: It varies widely by industry — retail often runs 20-50%, software and services can be much higher, while grocery and wholesale margins are often in the single digits. Compare to your specific industry's benchmarks rather than a universal target.
Is my pricing data sent anywhere?: No. All calculations run locally in your browser with JavaScript — nothing is transmitted or stored.