Enter cost and selling price to get gross profit, margin and markup – or enter a target margin to get the price you should charge.
By TanLabs · Formulas cross-checked against the free spreadsheet · Updated 2026-10-31 · Runs in your browser – nothing you type is sent anywhere
With cost $40, selling price $65, target margin 40%:
Margin 38.5% · Profit $25
Markup 62.5% · Price for a 40% margin: $66.67
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Gross profit = price − cost. Margin = profit ÷ price. Markup = profit ÷ cost. Price for target margin m = cost ÷ (1 − m).
Margin divides profit by the price, markup divides it by the cost. A 50% markup is only a 33% margin.
This is gross margin. Net margin also subtracts overheads like rent, software and tax.
No. Markup can, margin cannot.