Profit Margin & Markup Calculator
Calculate gross profit margin percentage and markup percentage.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Calculation Results
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Formula & How Profit Margin & Markup Calculator Works
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 = $100. Remember GST is separate and is not part of your margin.
- Enter Cost Price ($): Input your target parameter value.
- Enter Selling Price ($): Input your target parameter value.
- Apply Formula: Calculate using
Margin = (Profit / Revenue) × 100, Markup = (Profit / Cost) × 100. - 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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Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Official 2026/2027 Individual Income Tax Brackets, Stage 3 tax cuts, PAYG withholding, BAS & GST schedules.
National portal for business registration, fair work compliance, employer super guarantee rates (11.5% - 12%).
Official financial guidance on personal taxation, superannuation compounding, and business cash flow.
Dedicated Australian home loans, borrowing capacity, mortgage repayments & refinance modeling.