Business
See how gross margin differs from markup. Enter a cost and sale price in the same currency to compare profit and both percentages.
Enter nonnegative cost and sale price values using a decimal point. Use the same currency and per-item basis for both. The tool accepts losses and explains cases where a percentage has a zero denominator.
Enter your inputs and run the tool.
Profit = sale price − cost. Gross margin (%) = profit ÷ sale price × 100. Markup (%) = profit ÷ cost × 100. These percentages use different denominators.
Profit is 20 currency units, gross margin is 20%, and markup is 25%.
Profit is −20 currency units, margin is −20%, and markup is approximately −16.6667%. Cost zero makes markup undefined; sale price zero makes margin undefined.
Rounded results are educational estimates. Taxes, fees, refunds, overhead and accounting conventions are not added automatically. This is not a market-price recommendation, a tax calculation or a forecast of business profitability. Inputs are limited to one trillion currency units.
For mistakes or suggestions, contact UtilTrove. Please include a non-sensitive example.