Business

Margin Calculator

Calculate gross margin percentage and profit dollars from cost and selling price.

Free online toolWorks in your browserNo sign-up required

Margin Calculator

Explore this topic

Business Profitability & Pricing

Markup, margin, break-even and profit calculations for pricing and operating decisions.

Topic hub →

How to use this margin calculator

Enter the requested values above and select Calculate. The result updates immediately on the page, so you can change one value and compare different scenarios without leaving the calculator.

Formula and method

Margin = (selling price − cost) ÷ selling price × 100.

Example

If an item costs $50 and sells for $80, gross profit is $30 and margin is 37.5%.

What this calculator is useful for

Calculate gross margin percentage and profit dollars from cost and selling price. It is designed for quick estimates and everyday problem solving. When a calculation affects a contract, tax filing, medical decision or other high-stakes situation, verify the result with the appropriate professional or authoritative source.

Margin and markup are not interchangeable

Suppose you buy a product for $50 and sell it for $80. The gross profit is $30, the gross margin is $30 ÷ $80 = 37.5%, and the markup on cost is $30 ÷ $50 = 60%. Those are different percentages because their denominators differ.

Boundary case: gross margin is undefined when revenue (selling price) is zero. Even with a positive selling price, gross margin does not subtract rent, wages, payment fees, taxes, or other operating costs. Use it for product-level gross profitability, not full net profit.

Frequently asked questions

What does the Margin Calculator calculate?

Calculate gross margin percentage and profit dollars from cost and selling price.

How does the calculation work?

Margin = (selling price − cost) ÷ selling price × 100.

Is this calculator free?

Yes. ERICH Calculators is free to use and no account is required.

Transparency

Method, assumptions & corrections

See how formulas, sources and limitations are handled across ERICH Calculators.