Margin Variables
Define the item costs and pricing variables to compute profits, margins, and markup rates.
100
01000
150
01000
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Frequently Asked Questions
Gross margin is profit calculated as a percentage of revenue: Margin = (Profit / Revenue) * 100. Markup is profit calculated as a percentage of cost: Markup = (Profit / Cost) * 100. For example, an item costing $100 sold for $150 has a 50% markup but a 33.33% margin.
To find the selling price, divide the cost by one minus the decimal margin value: Price = Cost / (1 - Margin/100). For example, if cost is $80 and target margin is 20%, Selling Price = 80 / (1 - 0.20) = $100.
Yes. If you know your final revenue and markup percentage, you can calculate the cost of goods sold: Cost = Revenue / (1 + Markup/100). The calculator handles these parameters automatically in the target modes.
Healthy profit margins vary by industry. E-commerce retail margins typically hover between 50% and 70%, restaurants average 60% to 70% gross margin, while software companies can exceed 80% to 90% due to low COGS.
No. The calculator operates using client-side JavaScript. All financial calculations occur inside your browser, meaning none of your cost, revenue, or markup numbers leave your device.