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Gross Margin & Markup Profit Calculator

Determine optimal selling prices, compare margin with markup, and project profit across a product batch.

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Cost & Pricing Inputs

$
Direct cost of one unit before operating expenses
%
Profit as a percentage of the final selling price
units
Optional volume for total revenue and profit
Selling Price per Unit$75.00Unit cost: $45.00
Gross Profit per Unit+$30.00Margin: 40.0% · Markup: 66.7%

Selling Price Composition

Unit cost vs gross profit / loss
Batch Units100
Total COGS$4,500.00
Total Revenue$7,500.00
Total Gross Profit / Loss+$3,000.00
Calculator guide

How to use the Gross Margin & Markup Calculator

Convert between gross margin and markup, calculate selling price from cost and estimate product profit.

01Set inputsChoose values, units and assumptions.
02Apply the modelGross margin = (Selling price − Cost) ÷ Selling price. Markup = (Selling price − Cost) ÷ Cost. Target-price formula: Price = Cost ÷ (1 − Margin).
03Read the resultCheck the output against the assumptions before using it.
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What this calculator does

Use target-margin mode to solve for the selling price, or price-analysis mode to calculate the margin and markup implied by a selling price. Quantity inputs extend the result to total revenue and profit.

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Formula & method

Gross margin = (Selling price − Cost) ÷ Selling price. Markup = (Selling price − Cost) ÷ Cost. Target-price formula: Price = Cost ÷ (1 − Margin).

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Assumptions & notes

  • Margin and markup are different percentages with different denominators.
  • Target margins approaching 100% create very large selling prices.
  • The calculator uses product cost as COGS and does not include operating expenses unless they are embedded in the cost input.
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