Enter your cost and selling price to see gross profit, margin %, and markup % — or set a target margin and let the calculator find the right selling price. Made for retailers and trading businesses.
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Margin and markup are the two numbers every retailer and trader lives by — yet they are constantly confused. Markup tells you how much you added on top of cost; margin tells you how much of each sale you actually keep. Pricing on markup but reporting on margin is a common way businesses quietly under-earn.
In From cost & price mode, enter both numbers to see your profit, margin, and markup. In Find selling price mode, enter your cost and a target margin and the calculator works backwards to the price you should charge.
Calculating one product is easy. Managing margins across hundreds of SKUs, suppliers, and price changes is where Pyalm Books earns its keep.
Markup is profit as a percentage of cost, while margin is profit as a percentage of the selling price. A product bought at 100 and sold at 150 has a 50% markup but a 33.3% margin. They describe the same profit from two different angles.
Profit margin = (selling price − cost) ÷ selling price × 100. Enter your cost and selling price above and the calculator returns gross profit, margin %, and markup % instantly.
Selling price = cost ÷ (1 − target margin). For a 40% margin on a cost of 60, the price is 60 ÷ 0.6 = 100. Switch to 'Find selling price' mode above to do this automatically.
Because margin divides profit by the (larger) selling price, while markup divides the same profit by the (smaller) cost. The bigger denominator gives a smaller percentage, so margin is always below markup for a profitable sale.