Margin & Markup Calculator
Calculate gross margin, markup percentage, and the selling price you need to hit your target margin. Free, no signup required.
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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
Markup formula
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%.