Gross Margin vs Markup Calculator
Gross profit, gross margin and markup from cost and selling price — and why they differ.
Inputs
currency
currency
Results
- Gross margin
- 40 % of price
- Markup
- 66.67 % of cost
- Gross profit
- 40 currency
Formula
Gross profit = Price − Cost
Gross margin % = Profit ÷ Price × 100
Markup % = Profit ÷ Cost × 100
Assumptions & limits
- Margin is measured against selling price; markup against cost. A 50% markup is only a 33.3% margin.
- Cost here means direct unit cost (COGS); overheads are not included.
- Prices are exclusive of sales tax / VAT.
Worked example
Profit 40. Margin 40 ÷ 100 = 40%. Markup 40 ÷ 60 ≈ 66.67%.