Tax Tool

Profit Margin & Markup Calculator

Calculate gross profit margin percentage and markup percentage.

Last reviewed by the myCalculator Editorial Team

This calculator uses Australian rules and Australian data sources. Results may not apply outside Australia.

Input Parameters

Calculation Results

Gross Profit Margin
37.5%
Gross Markup Percentage
60%
Gross Profit ($)
$30
Cost Price
$50
Selling Price
$80

Formula & How Profit Margin & Markup Calculator Works

Mathematical Formula
Margin = (Profit / Revenue) × 100, Markup = (Profit / Cost) × 100

Margin and markup both describe profit, but against different bases, which is why they are often confused. Margin is profit as a percentage of the selling price, and markup is profit as a percentage of cost. If an item costs $60 and sells for $100, the profit is $40, so the margin is 40 ÷ 100 = 40% and the markup is 40 ÷ 60 = 66.7%. A 50% markup on cost gives only a 33.3% margin. To hit a target margin, divide your cost by (1 − margin): a 40% margin on a $60 cost needs a price of 60 ÷ 0.6 = $100. Remember GST is separate and is not part of your margin.

How to Calculate Profit Margin & Markup Calculator (Step-by-Step)
  1. Enter Cost Price ($): Input your target parameter value.
  2. Enter Selling Price ($): Input your target parameter value.
  3. Apply Formula: Calculate using Margin = (Profit / Revenue) × 100, Markup = (Profit / Cost) × 100.
  4. Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)

Why is margin always smaller than markup?

Margin is divided by the larger selling price; markup is divided by the smaller cost price.

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Official Regulatory & Government Data Sources

Authoritative Standards & Verified Reference Citations

Independent & Verified

Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:

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