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Profit Margin, Markup & Selling Price Calculator

Compare margin and markup, test a discount and find the selling price needed for your target gross margin.

USD • Planning model · Instant results · No sign-up

Enable JavaScript to use this interactive calculator. The calculation method and assumptions are explained below.

How this calculator works

Profit = discounted selling price − cost. Margin = profit ÷ selling price. Markup = profit ÷ cost. Target selling price = cost ÷ (1 − target margin).

Planning estimate only. Review the assumptions alongside the result before using it for a tax, financing or business decision.

Common questions

Why are margin and markup different?

They use different denominators. An $80 cost and $100 selling price produce a 20% margin and a 25% markup.

Is gross profit my final business profit?

No. Rent, payroll, financing and other operating costs still need to be covered. Use the break-even tool to bring fixed costs into the decision.

Put your numbers into context.

A calculator can help you ask better questions. Tell ZTax what you are planning and we will discuss the records, scope and support you need.

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