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Profit Margin & Markup Calculator

Avoid the common mistake of confusing profit margin with markup. Enter your cost of goods or services along with revenue or target margin to compute gross profit, margin percentage, markup percentage, and suggested retail price instantly.

$

Direct production or delivery cost

$

What the client or buyer pays

15%

Accounts for marketing, credit card processing, software, and administrative overhead.

The Rule of Thumb: Margin vs. Markup

If an item costs $45 and sells for $120:

Gross Margin (62.5%):
For every $1.00 you bring in, you keep $0.63 in gross profit.
Markup (166.7%):
You added 166.7% on top of your $45 base cost to arrive at $120.
Financial BreakdownProfitable
Calculated Selling Price
$120.00
Gross Profit: +$75.00 per unit
Gross Margin
62.5%
Profit ÷ Revenue
Markup
166.7%
Profit ÷ Cost
Net Profit
$57.00
After 15% opex
Net Margin
47.5%
Final bottom line
Revenue Share Breakdown:100% ($120.00)
COGS ($45.00)Opex ($18.00)Net ($57.00)

How to Use This Utility

  1. 1

    Choose Your Calculation Goal

    Select whether you already know your price and want to check your margin, or want to set a target margin to find the right selling price.

  2. 2

    Enter Unit Cost & Target Values

    Enter your unit product or service delivery cost, plus any overhead expense percentage to calculate both gross and net profit.

  3. 3

    Compare Margin vs. Markup

    Review the instant breakdown to ensure you never confuse markup with margin when negotiating client deals or setting retail prices.

Privacy & Assumptions

  • ✓Zero tracking: All computations, QR generations, and format exports run client-side in your web browser.
  • ✓No signup required: Generate and download your assets with no email capture or account walls.
  • •All calculations reflect unit economics. Volume discounts, merchant processing fees, and seasonal price adjustments should be factored into operating expense buffers.

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Frequently Asked Questions

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