Profit Margin & Markup Calculator

Determine your gross margin, sales markup, net profit, and total business revenue with multi-currency accuracy.

Commercial Parameters

$Currency:
$
$
$
Net Profit Margin
40.0%
$40.00 net profit per unit sold
Gross Margin
55.0%
$55.00 / unit
Sales Markup
122.2%
Added to unit cost
Total Revenue
$25,000
For 250 units
Total Net Profit
$10,000
After all expenses
Revenue Allocation per Unit Sold
COGS: 45%Opex: 15%Net: 40%
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Understanding Margin vs. Markup in Commercial Trade

Many business owners, e-commerce merchants, and contractors mistakenly conflate margin with markup. Confusing these two numbers can easily lead to underpricing your products and operating at a net loss despite strong top-line sales.

Key Formulas

  • Gross Margin % = ((Selling Price - COGS) / Selling Price) × 100
  • Markup % = ((Selling Price - COGS) / COGS) × 100
  • Net Profit Margin % = ((Total Revenue - Total Costs) / Total Revenue) × 100

Frequently Asked Questions

Gross Margin is the percentage of total selling price that is profit: (Revenue - Cost) / Revenue × 100. Markup is the percentage added on top of your original cost to arrive at the selling price: (Revenue - Cost) / Cost × 100. For example, if an item costs $50 and sells for $100, your Markup is 100%, but your Gross Margin is 50%.
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