Margin Calculator
Calculate profit margin, gross margin, or solve backward for revenue or cost from any combination. Used in pricing, retail and accounting.
How to use the Margin Calculator
- Enter your inputs into the Margin Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The margin formulas
Profit margin = (Revenue − Cost) / Revenue · · · Markup = (Revenue − Cost) / Cost
Margin and markup measure the same gap differently. A 50% margin equals a 100% markup. Margins are bounded at 100%; markups can exceed it.
Worked example
An item costing $40 sold for $100: profit margin = (100 − 40)/100 = 60%; markup = (100 − 40)/40 = 150%. To target a 40% margin on the same $40 cost, set price = 40 / (1 − 0.40) ≈ $66.67.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a percent of selling price. Markup is profit as a percent of cost. Same dollar amount, different denominator, very different percentages.
What is a typical retail margin?
Varies widely: grocery 1–3%, big-box 3–5%, apparel 50–60%, restaurants 5–10%, SaaS 70–80%. Average margins reflect competition and cost structure in each industry.
How do I price for a target margin?
Price = Cost / (1 − target margin). For a 30% margin on $50 cost: 50 / 0.70 = $71.43.