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Profit Margin & Markup Calculator

💡 Direct Answer: Gross profit margin measures profit relative to selling price, while markup measures profit relative to wholesale cost.

Profit Margin & Markup Calculator

Calculate gross profit dollar amount, profit margin percentage, and markup percentage from wholesale cost and revenue.

E-Commerce
$

Wholesale cost or manufacturing expense per unit

$

Retail price charged to customers

Profitability Breakdown

Gross Profit
$40

Profit generated per unit sold

Profit Margin
40%

Profit / Revenue

Markup
66.67%

Profit / Cost

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About Profit Margin & Markup Calculator

Setting correct retail prices requires understanding the mathematical difference between profit margin and markup. ConvertSheet's Margin & Markup Calculator gives e-commerce merchants, agency owners, and product managers instant clarity on bottom-line profits.

Mathematical Formula & Algorithm:Gross Profit = Revenue - Cost; Margin % = (Profit / Revenue) × 100; Markup % = (Profit / Cost) × 100.
Step-by-Step Guide

How to Convert Profit Margin & Markup Calculator to Result Online in 3 Simple Steps

Convert your data effortlessly with zero installations and complete local privacy.

  1. 1Step 1:

    Enter Cost & Revenue

    Input wholesale cost and target selling price, or cost and desired margin.

  2. 2Step 2:

    Compare Metrics

    Inspect gross profit dollar amount alongside both Margin % and Markup %.

  3. 3Step 3:

    Fine-tune Pricing

    Adjust selling prices to meet your target business profitability.

Help & Documentation

Frequently Asked Questions: Profit Margin & Markup Calculator

Answers to common questions regarding inputs, calculations, and mathematical methodology.

What is the difference between margin and markup?

A 50% markup on a $100 cost gives a $150 price with $50 profit. That $50 profit divided by the $150 price is a 33.3% margin.

Can profit margin ever exceed 100%?

No, margin cannot exceed 100% because profit cannot be greater than total revenue, whereas markup can exceed 100% indefinitely.

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