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Business calculators

Profit Margin & Markup Calculator

Check what a sale leaves after product cost, and find a price that meets your target gross margin.

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By customlogic.com.au

How to use this tool

1. Enter your own figures below, or choose Load example to try the worked example. Check the units beside each field.

2. Select Calculate to see the result and its breakdown. If you change an input, calculate again before copying or printing.

3. Use Copy summary or Print / save PDF to keep your assumptions and results together. Reset clears the form.

How the calculation works

Gross profit is selling price minus unit cost. Margin divides profit by selling price; markup divides profit by cost. Target price is cost divided by (1 − target margin), rounded up to the next cent. A margin and a markup of the same percentage do not give the same price.

Worked example

At a $60 cost and a $100 selling price, gross profit is $40, margin is 40% and markup is 66.67%. A 40% target margin gives a $100 selling price.

Questions and assumptions

What this estimate includes

Use one consistent cost basis and include product costs you want to recover. A price below cost correctly shows a loss. At zero cost, markup is undefined and the target-price formula returns zero; it cannot select a commercially meaningful price for a free input. Margin is not net business profit.

Can I save or share my result?

Copy summary includes the current inputs and results. Print / save PDF creates a local report with the calculation scope and source links. Your figures are not added to the page URL or stored by this tool. Refreshing clears the form.

Sources and further reading

Built and maintained by Custom Logic. Page updated .