Product pricing worksheet

Margin Calculator

Estimate selling price, gross profit, margin percentage, and markup percentage from the pricing values you already know. This margin calculator is for product and service pricing, not stock, crypto, or forex trading margin.

Results are educational estimates. Review taxes, payment fees, shipping, discounts, returns, and accounting requirements before publishing prices.

1

Choose what to solve for

Enter positive values, then calculate. Empty fields are solved only when the selected mode supports them.

Result preview

Pricing estimate

Cost 50.00 and selling price 80.00 produce 30.00 gross profit.

Selling price 80.00 Before discount
Gross profit 30.00 Selling price minus cost
Margin % 37.50% Profit divided by selling price
Markup % 60.00% Profit divided by cost
After discount margin 37.50% No discount applied

Formulas used by this margin calculator

Gross profitSelling price - cost

Margin %Gross profit / selling price x 100

Markup %Gross profit / cost x 100

Selling price from marginCost / (1 - margin decimal)

How to use the margin calculator

  1. Select the value you want to solve for: price, margin, markup, or cost.
  2. Enter the values you know. For most pricing checks, cost and selling price are enough.
  3. Use discount when you want to see how a sale price changes gross margin.
  4. Review the result cards and formula strip before using the estimate in a price list.

The tool is most useful for product managers, store owners, freelancers, and students who need a quick gross margin calculator. It can also work as a cost margin calculator when you know the selling price and target margin but need to back into the maximum cost.

Margin vs markup

Margin and markup describe the same profit from different bases. Margin compares gross profit with revenue or selling price. Markup compares gross profit with cost. If an item costs 50.00 and sells for 80.00, the profit is 30.00. The margin is 37.50% because 30.00 is 37.50% of 80.00. The markup is 60.00% because 30.00 is 60.00% of 50.00.

This is why a markup calculator and a profit margin calculator do not always show the same percentage. The numerator is the same profit amount, but the denominator changes.

Examples

Common pricing scenarios

Scenario Known values Result to review Why it matters
Set a selling price Cost 42.00, target margin 35% Selling price 64.62, profit 22.62 Checks whether the price leaves enough gross profit.
Audit an existing price Cost 18.50, price 29.00 Margin 36.21%, markup 56.76% Shows both margin and markup for the same item.
Test a discount Cost 50.00, price 80.00, discount 15% Discounted price 68.00, margin 26.47% Shows how promotions can compress gross profit.
Find a cost ceiling Price 120.00, target margin 40% Maximum cost 72.00 Helps compare supplier quotes against a margin goal.

What this tool includes

This margin calculator focuses on gross margin for a single item or average unit. It includes product cost, selling price, gross profit, margin percentage, markup percentage, and optional discount impact. You can use one currency at a time; the math is the same for dollars, pounds, euros, or another currency.

If you want net margin, include relevant variable costs in the cost field or use the result as an early pricing estimate only. Net margin may also include advertising, payroll, rent, platform fees, taxes, payment fees, returns, and other operating expenses.

Review checklist

  • Confirm whether cost includes shipping, payment fees, packaging, and marketplace fees.
  • Use discount impact before running a promotion or coupon campaign.
  • Compare margin percentage and markup percentage before discussing price changes.
  • Check final pricing against your accounting, tax, and business requirements.
  • Document assumptions if you share the result with a team or client.

FAQ

Margin calculator questions

Does this calculate gross margin or net margin?

It calculates gross margin from cost and selling price. To approximate net margin, add extra variable costs into the cost field and review the result as an estimate.

What is the difference between margin and markup?

Margin divides gross profit by selling price. Markup divides gross profit by cost. The same item can have a 37.50% margin and a 60.00% markup.

How do I calculate selling price from margin?

Convert the target margin to a decimal, subtract it from 1, then divide cost by that number. For example, 50.00 cost at a 37.50% target margin gives 80.00 selling price.

Can I include shipping or platform fees?

Yes, if those fees should be treated as part of your unit cost. Add them to cost before calculating profit margin, then review whether other overhead still applies.

Can this margin calculator handle bundles?

It can estimate a bundle if you enter the combined cost and combined selling price. For mixed bundles, review each item separately if costs or discounts vary widely.

Privacy and limitations

Calculations run in your browser and the page does not need an account. The tool is an independent educational calculator. It is not accounting, tax, investment, legal, or financial advice, and it is not affiliated with any accounting standard setter, software platform, or marketplace. Review the final numbers before using them for real pricing.