Profit Margin & Markup Calculator

Calculate Gross Profit, Gross Margin Percentage, Markup on Cost, and Revenue from Cost of Goods Sold (COGS).

Configurable Calculation Inputs

Cost of Goods (Cost per Unit): number (Default: 45 $)
Selling Price (Revenue per Unit): number (Default: 75 $)
Estimated Units Sold / Month: number (Default: 500 units)

Mathematical Formula: Gross Margin vs. Markup Equations

          Margin (%) = [(Revenue - Cost) / Revenue] * 100 ; Markup (%) = [(Revenue - Cost) / Cost] * 100
        

Differentiates margin (profit as a share of selling price) from markup (profit as a percentage addition to cost).

Comprehensive Guide & Context

The Mathematical Distinction

A 50% markup on a $100 product yields a $150 price. However, the resulting gross profit margin is only 33.3% ($50 profit / $150 revenue).

Worked Calculation Examples

Retail E-commerce Apparel

Buying shirts for $20 wholesale, retailing at $50.

Result: 60.00% Margin (150.00% Markup) · $7,500 Monthly Profit

Frequently Asked Questions

What is a healthy profit margin in business?

Average net margins across all industries hover around 7-10%, while high-margin software/services often achieve 60-80% gross margins and 20-30% net margins.