Enter revenue and cost to calculate gross profit margin percentage instantly. Or work backwards: enter cost and markup to find your selling price. Both calculators in one place — including a margin vs. markup comparison table and industry benchmarks.
Revenue + Cost → Margin %
Gross Margin
30.00%
Cost + Markup % → Selling Price
Selling Price
$1,000.02
Common mistake: A 50% markup is only a 33.3% margin. Markup and margin are not interchangeable — margin is always lower than the equivalent markup. Use the comparison table below to see why.
Same $100 cost, different ways of expressing the same profit
| Cost | Margin % | Markup % | Selling Price | Profit |
|---|---|---|---|---|
| $100.00 | 10% | 11.11% | $111.11 | $11.11 |
| $100.00 | 20% | 25.00% | $125.00 | $25.00 |
| $100.00 | 25% | 33.33% | $133.33 | $33.33 |
| $100.00 | 30% | 42.86% | $142.86 | $42.86 |
| $100.00 | 40% | 66.67% | $166.67 | $66.67 |
| $100.00 | 50% | 100.00% | $200.00 | $100.00 |
| $100.00 | 60% | 150.00% | $250.00 | $150.00 |
Formula: Markup = Margin ÷ (1 − Margin) · Margin = Markup ÷ (1 + Markup)
Gross profit margin measures what percentage of each dollar of revenue you keep as profit after covering the direct cost of goods.
Step 1 — Gross Profit
Gross Profit = Revenue − Cost
Step 2 — Gross Margin %
Margin % = (Gross Profit ÷ Revenue) × 100
Example: Revenue $1,000 − Cost $700 = Profit $300. $300 ÷ $1,000 × 100 = 30% margin
Markup percentage expresses how much you add above cost. It is always calculated relative to cost — not to the final selling price.
Markup from Cost + Selling Price
Markup % = ((Price − Cost) ÷ Cost) × 100
Selling Price from Cost + Markup
Price = Cost × (1 + Markup ÷ 100)
Example: Cost $700 with 42.86% markup → $700 × 1.4286 = $1,000 selling price (30% margin)
Convert between margin and markup
Margin → Markup
Markup = Margin ÷ (1 − Margin)
e.g. 30% margin → 0.30 ÷ 0.70 = 42.86% markup
Markup → Margin
Margin = Markup ÷ (1 + Markup)
e.g. 50% markup → 0.50 ÷ 1.50 = 33.33% margin
Gross margin benchmarks vary significantly by industry. A 30% margin is excellent for construction but weak for software. Use these ranges to benchmark your business — then compare against public companies in your specific segment.
Software / SaaS
70–80%+
Professional Services
50–70%
Healthcare
30–60%
E-commerce
30–50%
Retail
40–60%
Manufacturing
30–50%
Restaurants
60–70%*
*food cost only
Construction
20–35%
Sources: NYU Stern gross margin data, public company filings. Ranges reflect typical mid-market figures. Net margin (after operating expenses) is substantially lower.