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Margin calculator

Turn cost and price into profit, gross margin and markup — or work backwards from a target margin or markup to the price you should charge. Advanced options (free) add volume: total profit at a quantity and the break-even units against your fixed costs.

Advanced optionsfree
Gross margin
40.0%
Selling price$100
Profit per unit$40
Markup66.7%

Tip: margin is profit ÷ price; markup is profit ÷ cost. Set by margin or markup to solve for the price you should charge.

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Frequently asked questions

What's the difference between margin and markup?
Margin is profit as a percentage of the selling price ((price − cost) / price). Markup is profit as a percentage of cost ((price − cost) / cost). Markup is always the larger number.
Can it work out the price for a target margin?
Yes — switch "Set by" to Margin % or Markup %, type your target, and it solves for the selling price (and the other percentage) from your cost. Add units sold and fixed costs to get total profit and your break-even quantity.
Why does margin matter when buying a business?
Margin quality is part of how a business is valued — higher, stable margins support a higher multiple. GradeThisDeal factors margin into its deal score.