Profit Margin & Markup Calculator

$
$
Quick starts
Gross profit
—
Selling price
—
Profit margin
—
Markup
—
All math runs locally in your browser — nothing is sent to a server.

Worked examples

Retail · Keystone pricing
You buy a candle wholesale for $25 and sell it for $50 — the classic US retail "keystone" rule (double the cost).
Profit$25.00
Margin50.00%
Markup100.00%
Restaurant · Plate costing
Ingredients cost $7.50 per plate and you target a 70% food margin: price = $7.50 ÷ 0.30.
Menu price$25.00
Profit$17.50
Markup233.33%
E-commerce · Markup pricing
Landed cost is $18 and your store standard is a 65% markup: price = $18 × 1.65.
Price$29.70
Profit$11.70
Margin39.39%

The math

Gross Profit= Revenue − COGS
Profit Margin %= Gross Profit ÷ Revenue × 100
Markup %= Gross Profit ÷ Cost × 100
Selling Price (from margin)= Cost ÷ (1 − Margin %)
Selling Price (from markup)= Cost × (1 + Markup %)
Markup from Margin= Margin ÷ (100% − Margin %)
Margin from Markup= Markup ÷ (100% + Markup %)

Margin vs Markup

Profit Margin

  • Base: Revenue (selling price)
  • Formula: Profit ÷ Revenue × 100
  • "50%" means: price $100 → profit $50
  • Always the smaller of the two numbers
  • Used by: finance teams, SaaS, retail gross-margin reporting

Markup

  • Base: Cost (COGS)
  • Formula: Profit ÷ Cost × 100
  • "50%" means: cost $100 → profit $50, price $150
  • Always the bigger of the two numbers
  • Used by: purchasing, wholesale, restaurant plate costing

Frequently asked questions

What's the difference between markup and profit margin?
Both measure profit, but against different bases. Markup is profit as a % of cost; margin is profit as a % of selling price. A product costing $40 sold for $60 has a 50% markup but only a 33.33% margin.
How do I calculate a 30% profit margin?
Divide your cost by 0.70. Example: cost $21 → $21 ÷ 0.70 = $30.00 selling price. Your profit is $9, which is exactly 30% of $30.
Is a 50% markup the same as a 50% margin?
No. A 50% markup equals only a 33.33% margin. To get a 50% margin you need a 100% markup (keystone pricing).
What is a good profit margin in the US?
As a rule of thumb for net profit: 5% is low, 10% is average, 20% is strong. Gross margins vary widely: SaaS runs 70–85%, restaurants 60–72% on food, retail typically 25–35%.
What is keystone pricing?
Doubling your wholesale cost: price = cost × 2. That's a 100% markup and a 50% gross margin — a long-standing US retail standard for apparel, gifts and hardware.
Gross margin vs net margin — what's the difference?
This calculator computes gross margin (price minus product cost only). Net margin also subtracts rent, salaries, ads, shipping and taxes. Use gross margin for pricing decisions; net margin for overall business health.