PALLAS / CALCULATOR
Margin & Markup Calculator
Enter cost and selling price to see gross profit, gross margin and markup side by side. Margin and markup use different denominators, so the percentages are not the same thing.
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Method & formula
Gross profit is the selling price minus cost. Margin compares that profit with the selling price, while markup compares it with cost. One sale therefore produces two different percentages.
- Gross profit = selling price − cost
- Gross margin % = gross profit ÷ selling price × 100
- Markup % = gross profit ÷ cost × 100
Example
If an item costs 60 and sells for 100, gross profit is 40. The margin is 40%, while the markup is 66.67%.
FAQ
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a cost of 100 gives a selling price of 150, which is a margin of 33.33%.
Does this include VAT, shipping or payment fees?
No. It compares only the cost and selling price you enter. Use the Break-even ROAS Calculator when fulfilment and transaction costs also matter.