Calculators & Math
Margin Calculator
Find out your gross profit, margin, and markup percentages.
FreeRuns in your browserNo sign-up
How to calculate gross profit margin
- Step 1: Enter your product cost (cost of goods sold) and your desired selling price (or target margin percentage).
- Step 2: The calculator instantly computes gross profit, profit margin percentage, and markup percentage.
- Step 3: Adjust your selling price in real time to reach optimal e-commerce profitability.
Profitability analysis tools
- Calculates gross profit margin and markup percentages simultaneously to prevent pricing confusion.
- Bi-directional mode: calculate selling price from target margin, or margin from selling price.
- Includes revenue breakdown showing net profit dollar or rupee amounts per unit sold.
- Essential for e-commerce sellers, retail stores, and service freelancers.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by revenue (selling price), while markup is profit divided by cost. A 50 percent markup equals a 33.3 percent profit margin.
Why is knowing your gross margin important?
Gross margin shows whether your pricing covers variable production costs while leaving sufficient profit to cover fixed overhead expenses and marketing.
How do I calculate a 40 percent profit margin on a 600 Rupee product?
Divide cost by (1 minus 0.40): 600 / 0.60 = 1000 Rupees selling price, yielding 400 Rupees profit.