Margin Calculator
Calculate gross profit, margin percentage, and markup.
Pricing inputs
Choose a pricing mode and enter cost, price, margin, markup, and sales volume.
Direct product, service, or purchase cost per unit.
Price charged to the customer before optional taxes.
Optional packaging, payment fee, shipping, or handling cost.
Used to estimate total revenue, cost, and gross profit.
Profit margin
40.00%
Moderate margin: This is a healthier gross margin, depending on your industry and overhead.
Gross profit
£4,000.00
Based on 100 units sold.
Selling price
£100.00
Calculated or entered selling price per unit.
Gross profit per unit
£40.00
Selling price minus total unit cost.
Markup
66.67%
Profit divided by total unit cost.
Total revenue
£10,000.00
Selling price multiplied by units sold.
Total cost
£6,000.00
Total unit cost multiplied by units sold.
Cost share
60.00%
Total unit cost as a percentage of selling price.
Support
Business pricing support layer
Pricing formulas
Calculates margin, markup, profit, revenue, and target selling price from your inputs.
Estimate only
Results are gross estimates and may not include taxes, refunds, discounts, overhead, labor, or platform fees.
Decision focused
Use the calculator to test pricing, cost changes, margin goals, and sales volume assumptions.
Interpretation
What these margin results mean
Profit margin
Your gross margin is 40.00%, meaning that percentage of selling price remains after the entered unit cost.
Profit per unit
Each unit generates about £40.00 in gross profit before overhead, tax, and other business expenses.
Selling price
The selling price used in this scenario is £100.00 per unit.
Volume impact
At 100 units, estimated gross profit is £4,000.00.
Basics
How profit margin works
Cost
Cost is the direct amount needed to buy, make, or deliver one unit.
Selling price
Selling price is the amount charged to the customer before optional taxes or discounts.
Profit
Profit is selling price minus cost. It can be positive, zero, or negative.
Margin
Margin expresses profit as a percentage of selling price or revenue.
Comparison
Margin vs markup
Margin
40.00%
Margin uses selling price as the base. It shows what percentage of revenue remains as gross profit.
Markup
66.67%
Markup uses cost as the base. It shows how much profit is added on top of cost.
Pricing context
Gross margin vs net margin
Gross margin
Gross margin usually focuses on direct product or service costs.
Net margin
Net margin also accounts for operating expenses, salaries, taxes, interest, software, rent, and overhead.
Real pricing
Actual pricing may need room for returns, payment fees, discounts, shipping, customer support, and marketing.
Use cases
Common margin calculator use cases
Retail pricing
Estimate gross margin on wholesale inventory sold to customers.
Ecommerce products
Test product cost, selling price, shipping, packaging, and platform fees.
Freelance services
Compare delivery cost with client price before quoting.
Restaurants
Review menu pricing against ingredient cost, while remembering labor and overhead.
Manufacturing
Estimate unit economics from production cost and selling price.
Discount planning
Check whether discounts leave enough gross margin.
Formula
Margin formula explanation
Profit
Profit = Selling Price − CostProfit is the amount left after subtracting direct cost from selling price.
Margin
Margin = Profit ÷ Selling Price × 100Margin shows profit as a percentage of revenue or selling price.
Markup
Markup = Profit ÷ Cost × 100Markup shows profit as a percentage of cost.
FAQ
Margin calculator questions
Profit margin measures profit as a percentage of selling price or revenue. It shows how much of each sale remains after the cost you entered.
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