Your figures
Result
How this calculator works
Enter what one unit costs you to buy or make, and the price you sell it for. The calculator returns three figures that are often confused with each other. Gross profit is the simple difference between price and cost. Margin expresses that profit as a percentage of the selling price — the number accountants and marketplaces mean when they talk about profitability. Markup expresses the same profit as a percentage of the cost, which is the number most people use when they are setting a price in the first place.
The distinction matters because the two percentages behave differently. Margin can never reach 100% unless the cost is zero, while markup has no ceiling at all. A product that costs 60 and sells for 100 carries a 40% margin and a 66.7% markup, and both statements are true at the same time — they are just answering different questions about the same 40 of profit.
Good practice and limits
Use margin when you compare products against each other or against a target, because it is measured on the same base (the price) every time. Use markup when you are building a price up from a cost. Whichever you choose, write the word next to the number in your notes: a bare “40%” in a spreadsheet has started more pricing arguments than any other figure in small business.