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Startup Toolkit · calculator

Gross Margin & Markup Calculator

Margin compares profit with selling price. Markup compares the same profit with cost. This tool keeps those denominators visible.

CalculateUnderstandDecide

CALCULATE

Enter your assumptions.

Nothing entered here is saved or sent to OpenSkool.

Symbol only. This tool does not convert currencies.

Your assumptions

UNDERSTAND THE RESULT

Your result will appear here.

Enter the assumptions you want to examine, then calculate. We will show the result, the arithmetic and its limits.

HOW WE CALCULATED THIS

The formula stays visible.

Each result uses only the values you enter. The calculator does not add hidden assumptions.

Gross profit
Selling price − cost
Gross margin
Gross profit ÷ selling price × 100
Markup
Gross profit ÷ cost × 100

UNDERSTAND BEFORE YOU DECIDE

What the number can—and cannot—tell you.

01

Margin uses selling price

A 40% margin means gross profit represents 40% of the selling price.

02

Markup uses cost

The same transaction may have a 66.7% markup because gross profit is being compared with the smaller cost base.

The result covers only the cost and price entered. It does not establish net profit or replace accounting advice.