Tax Tool

Profit Margin & Markup Calculator

Calculate gross profit margin percentage and markup percentage.

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 measures profit relative to selling price. Markup measures profit relative to cost price.

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.

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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