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Margin versus markup calculator from Profits Plus

Is it Margin or Markup? Many times you are asked, "What is your markup on that item?" Perhaps this phrase is used because when you lower the price, you take a 'markdown'. This calculator demonstrates the difference in a margin and a markup. To determine your margin, enter information in one of two ways.

You can enter the cost and desired selling price to determine the margin. Or you can enter the cost and desired margin to determine the selling price.

The answer you get for desired selling price is your Gross Margin.While you can use the calculator below to do the math for you. The gross margin states that the cost of the item is a percentage of the selling price of the item. As an example; the item costs $5.00 and is selling for $10,00. The gross margin is 50% because the cost of the item is 50% of what you are selling it for.

 
Cost of Item: $
Desired Selling Price: $
Desired Gross Margin: (%) %

This is where you calculate the markup of an item. Markup shows the relationship between the cost of the selling price. As in the margin example you can enter the cost and desired markup for an item to get the selling price of an item. Or, you can enter the cost and the selling price of an item to determine the markup. Using the same cost, $5.00, and selling price, $10.00 as above, the markup would be 100% because you are marking up the cost of the product by 100%.

Notice that when you enter the cost in both of these examples and the desired margin or markup, the selling price is going to be different. If you are calculating the markup, the selling price will be lower.

Cost of Item: $  
Desired Markup: (%) %
Desired Selling Price: $
      

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NOVEMBER 2026
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Small Business

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All this plus the Internet Tool for Your Business and a staff incentive idea for your business.
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BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Seems like today, everyone is a consultant for something. Most small businesses owners have likely received an email, phone call, or visit from someone wanting to sell the services of a consultant.

 

You might find the right combination of consultants (let's call them advisors) in your own neighborhood. And they would likely trade their advice for some advice from you. This month's Small Business Advisory explains how.

Small Business

News

 

Top Story

November has two special events tailored to small businesses. The first occurs in the third week of the month. It's the Great American Teach In Day. Your help will be needed and appreciated.

 

The second event is Saturday, November 28 - Small Business Saturday. Details of how to participate in each is in this month's newsletter.


Article of the Month

Approaching the end of the year, many small businesses start to consider their pay scale for 2027. With some small businesses, bonuses at the end of the year are a tradition. The article of the month shares ideas of how to approach payroll as the new year approaches.


Book of the Month

You are awesome at what you do. You are a small business owner and that takes a lot of bravery to do what you do.

 

Part of what you requires what Malcolm Gladwell calls, "thin slicing." Others refer to it as "gut feeling." The book of the month talks about the need to stop doubting your greatness.


All this plus the Internet Tool for Your Business and a staff incentive idea for your business.