About this tool
Given a unit cost and a selling price, compute the markup (relative to cost) and the gross margin (relative to revenue).
Formula
Profit = Price − Cost. Markup = Profit/Cost × 100%. Margin = Profit/Price × 100%.
Worked example
Cost $40, Price $60 → Profit $20. Markup = 50%. Margin ≈ 33.3%.
Notes
Markup and margin are easily confused. A 50% markup is only a 33% margin. To target a margin of m, set markup = m / (1 − m).