Calculate margin
Enter direct cost and selling price. The calculator updates live and keeps the URL in sync, so each setup is easy to revisit or share later.
Quick presets for common pricing situations.
Calculator
Margin Calculator
Work out gross margin from cost and selling price. This gross margin percentage calculator is the cleanest way to see how much of each sale stays in the business before overhead, payroll, and tax.
Formula
How to calculate margin
Margin = (Selling price - Cost) / Selling price × 100
If your product costs $62 and you sell it for $89, your gross profit is $27. Divide that profit by the selling price and your margin is 30.34%.
When to use margin
- Reporting profitability by product or service line.
- Checking whether a proposed price hits your target margin.
- Comparing catalog categories, channels, or suppliers.
Useful next step
If you know your cost and need to build a price from scratch, jump to the markup calculator. If your price includes tax, use the VAT calculator first and then check margin on the net amount.
Review note
How PricingDeck reviews this margin calculator
How we calculate it
- The page uses the standard gross margin formula shown above.
- The example is checked against net selling price rather than a tax-inclusive total.
- Worked examples are refreshed when the default scenario changes.
Editorial context
This page is written for operators comparing products, quotes, or service lines. It is educational reference content and should be paired with local tax, accounting, and reporting rules before filing or publishing numbers externally.
FAQ
Common questions about gross margin
What is a good gross margin percentage?
It depends on the business model, but the practical test is simple: the margin should leave enough room to cover overhead, sales costs, and target profit. A “good” margin in one category can still be too thin in another.
What is the difference between gross margin and markup?
Gross margin measures profit as a share of selling price, while markup measures profit as a share of cost. That is why markup is always higher than margin for the same underlying sale.
Should tax be included in margin calculations?
Usually no. Gross margin should normally be checked against the net selling price before VAT or sales tax is added, because tax is not part of the value the business keeps.