Logistics unit converter
Switch between the units your supply chain speaks.
Data & AnalysisDATA & ANALYSIS
Gross Margin, Markup & Gross Profit Calculator
Calculate gross profit, gross margin, and markup from one selling price, a consistent unit-cost basis, and quantity.
Gross margin & markup calculator
Calculate gross profit, gross margin, and markup from one selling price, a consistent unit-cost basis, and quantity.
YOUR RESULT LIVE CALCULATION
Gross profit as a share of selling price
28% gross margin
MARGIN IS NOT MARKUP- Markup on unit cost
- 38.89%
- Gross profit per unit
- $7
- Total revenue
- $25,000
- Total entered cost
- $18,000
- Total gross profit
- $7,000
Margin uses selling price; markup uses cost. Dollar profit remains signed. A zero denominator produces N/A, not an invented percentage.
BEHIND THE NUMBER
How the calculation works
Margin divides unit gross profit by selling price, while markup divides the same profit by unit cost. Total revenue, cost, and gross profit scale by quantity. A price below cost produces negative gross profit, not a zero-floor result. Margin is undefined at zero selling price; markup is undefined at zero unit cost.
Unit gross profit = price - cost; gross margin = profit / price x 100; markup = profit / cost x 100
When this calculation helps
Margin divides gross profit by selling price; markup divides the same profit by cost. Identify which denominator a quote or target uses before converting it into a price.
Check the interpretation
A 25% markup does not produce a 25% margin. Keep cost boundaries and per-unit quantities consistent, and separate gross profit from overhead, tax, and net profit. A percentage conversion is not a recommendation for a market selling price.
This is not net profit or an accounting determination of cost of goods sold. Use consistent currency and cost inclusions, and handle discounts, taxes, returns, freight, and overhead according to your approved cost boundary.
Worked example: Returns Cost: Separate Processing, Recovery, and Lost Inventory Value
Good to know
Is a 30% markup a 30% margin?
No. With $100 cost and a 30% markup, the selling price is $130 and gross margin is $30 / $130, or about 23.08%.
Why can a percentage be N/A?
Division by a zero price or zero cost is undefined. The tool still reports dollar revenue, costs, and profit rather than inventing a percentage.