Free Tool

Margin & Markup Calculator

Calculate gross margin, markup percentage, and the selling price you need to hit your target margin. Free, no signup required.

Calculate Margin & Markup

Find Required Selling Price

Understanding Margin vs. Markup

Gross margin is the percentage of your selling price that is profit. If you sell a product for €100 and it costs you €60, your gross margin is 40%.

Markup is the percentage you add to your cost to get the selling price. Using the same example, the markup would be 66.7% (€40 profit ÷ €60 cost).

The key difference: margin is always lower than markup for the same transaction. A 50% markup equals a 33.3% margin. Pricing managers typically think in margins because it directly relates to revenue.

Margin formula

Gross Margin (%) = (Selling Price − Cost Price) ÷ Selling Price × 100

Markup formula

Markup (%) = (Selling Price − Cost Price) ÷ Cost Price × 100

Frequently Asked Questions

What is gross margin?

Gross margin is the percentage of revenue that exceeds the cost of goods sold. It's calculated as (Selling Price - Cost Price) / Selling Price × 100.

What is the difference between margin and markup?

Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost price. A 50% markup results in a 33.3% margin.

What is a good gross margin for e-commerce?

Typical e-commerce gross margins range from 20-60% depending on the industry. Fashion averages 40-60%, electronics 10-20%, and grocery 1-5%.

Want to protect your margins automatically?

Luska monitors competitor prices and alerts you before margin-eroding price changes hit your catalog.