Calculate the gross margin percentage from your unit cost and selling price, with the markup percentage and profit per unit alongside.
| Input | Result |
|---|---|
| $40 cost, $59.99 price | margin 33.32% · markup 49.98% |
| $8 cost, $19.99 price | margin 59.98% · markup 149.88% |
| $120 cost, $150 price | margin 20.00% · markup 25.00% |
Yes, exactly. If cost is $8 and price is $16, profit $8 is 50% of the price and 100% of the cost. Doubling the cost always gives a 50% margin; a 50% markup would only give a 33.3% margin.
No. This is gross margin per unit, price minus direct cost. Net margin subtracts rent, wages, marketing and tax too, and is always lower. Use gross margin to judge pricing, net margin to judge the business.
Platforms often compute margin after their fees. If a marketplace takes 15%, subtract that from the price first (or add it to cost) before reading the margin, otherwise you overstate it by roughly the fee percentage.
How this page is built and kept current. Written and fact-checked by the MoneyCalcsHub editorial team. We do not sell financial products and we accept no payment to change a result, the arithmetic on this page runs in your own browser from the numbers you type.
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