BUSINESS OPERATIONS
Profit margin and markup calculator
Compare gross margin with markup and find the revenue required for your target margin.
Your scenario
All amounts are in US dollars. Start with the example, then enter your numbers. Results update as you type.
Calculation inputs stay in this page’s memory and are not submitted as a lead. Requesting contact is a separate step.
ILLUSTRATIVE EXAMPLE
See what the numbers say.
- Gross profit
- $4,000.00
- Gross profit margin
- 40%
- Markup on cost
- 66.67%
- Sales needed for target margin
- $10,000.00
Estimates, not quotes, approvals, appraisals or guaranteed returns.
How this calculator works
Gross margin = (revenue − direct cost) / revenue × 100%. Markup = (revenue − direct cost) / direct cost × 100%.
Assumptions to check
- Margin and markup use different denominators. A 40% margin is not a 40% markup.
- This calculates gross profit, before overhead, financing and tax. Match costs to the same sales period and include all direct labor and materials.