Profit Margin & Price Markup Tool
Set the right selling price for your target margin.
Open the Interactive CalculatorHow It's Calculated
Selling Price = COGS ÷ (1 − Desired Margin%).
Markup % = Gross Profit ÷ COGS (different from margin, which is Gross Profit ÷ Selling Price).
Example
Example: a $40 COGS item priced for a 40% gross margin should sell for $40 ÷ 0.60 = $66.67, a markup of about 66.7%.
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of selling price; markup is profit as a percentage of cost. A 40% margin equals a 66.7% markup.
Why can't margin be 100% or higher?
Margin is bounded below 100% because it is profit divided by selling price, which always includes the cost itself.