Solve for cost, revenue, profit, margin, and markup
Retail and wholesale pricing revolves around five linked variables: cost, revenue (selling price), gross profit, gross margin, and markup. If you know any two, the other three follow from standard accounting relationships. Pick your known pair, enter values, and this calculator fills the rest.
Margin expresses profit as a share of selling price, while markup expresses profit as a share of cost. They are not interchangeable. Use the margin calculator for quick margin lookups or the profit calculator when you also track quantity and operating expenses.
Key formulas
When cost and target margin are known, revenue equals cost divided by (1 minus margin as a decimal). When revenue and markup are known, cost equals revenue divided by (1 plus markup as a decimal).
Worked example
Cost is $100 and revenue is $150. Gross profit is $50. Gross margin is $50 ÷ $150 = 33.33%. Markup is $50 ÷ $100 = 50%.
Frequently asked questions
What is the difference between margin and markup?
Why must gross margin stay below 100%?
Does this include operating expenses?
Which two values should I enter?
Resources and references
The formulas and methods in this calculator were checked against these independent sources.