Profit Margin & Markup Calculator
Calculate gross profit dollars, net profit margin %, markup multiplier %, and return on investment (ROI) across retail, wholesale, and ecommerce products.
Profit Margin & Markup Calculator
Calculate Net Margin %, Markup %, Gross Profit, and Return on Investment (ROI)
Revenue & Cost Inputs
$
$
$
$
$
$
Net Profit Margin
38%$18.99
Price Markup %
77.5%Above Direct Cost
Gross Profit
$35.49Price − Product Cost
Return on Investment
131%ROI on Product Cost
Margin vs Markup Explained
Profit Margin (38%) represents the portion of retail price that remains as profit after deducting expenses.
Price Markup (77.5%) is the percentage added to your direct costs to arrive at your retail selling price.
Margin vs Markup Conversion Matrix & Financial Formulas
Confusing profit margin % with markup % is the #1 mistake new sellers make. Because markup compares profit against cost while margin compares profit against revenue, margin is always lower than markup.
Profit Margin % to Markup % Quick Lookup Table
| Desired Profit Margin % | Equivalent Markup % Required | Example ($10 Cost) | Net Profit ($) |
|---|---|---|---|
| 20% Profit Margin | 25.0% Markup | $12.50 Price | $2.50 Profit |
| 33.3% Profit Margin | 50.0% Markup | $15.00 Price | $5.00 Profit |
| 50.0% Profit Margin | 100.0% Markup (Keystone) | $20.00 Price | $10.00 Profit |
| 66.7% Profit Margin | 200.0% Markup | $30.00 Price | $20.00 Profit |
| 75.0% Profit Margin | 300.0% Markup | $40.00 Price | $30.00 Profit |