Margins Calculator

Margins Calculator

Calculate Gross Profit, Profit Margin, and Markup instantly.

Calculation Results

Gross Profit
$0.00
Profit Margin
0.00%
Markup
0.00%
Revenue
$0.00

Understanding Profit Margins

In business, the Gross Profit Margin is one of the most critical indicators of financial health. It represents the percentage of total sales revenue that a company retains after incurring the direct costs associated with producing or purchasing the goods it sells.

The Formula for Margin

Margin = ((Selling Price – Cost) / Selling Price) * 100

Margin vs. Markup: What's the difference?

While many use these terms interchangeably, they tell different stories:

  • Margin is based on the Selling Price. It tells you how much of every dollar of sales is profit.
  • Markup is based on the Cost. It tells you how much you added to the cost to reach your selling price.

Example Calculation

Scenario Cost Price Margin (%)
Retail Clothing $20.00 $50.00 60%
Consumer Electronics $400.00 $450.00 11.1%
Software SaaS $5.00 $50.00 90%
function calculateMargins() { var cost = parseFloat(document.getElementById('costPrice').value); var price = parseFloat(document.getElementById('sellingPrice').value); var resultsDiv = document.getElementById('resultsArea'); if (isNaN(cost) || isNaN(price)) { alert("Please enter valid numbers for both Cost and Selling Price."); return; } if (price 0 ? (profit / cost) * 100 : 0; // Update UI document.getElementById('grossProfitResult').innerText = '$' + profit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('marginResult').innerText = margin.toFixed(2) + '%'; document.getElementById('markupResult').innerText = (cost > 0) ? markup.toFixed(2) + '%' : 'N/A'; document.getElementById('revenueResult').innerText = '$' + price.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); resultsDiv.style.display = 'block'; // Smooth scroll to results resultsDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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