CalculationTime

Margin Calculator

Calculate gross margin, gross profit, markup percentage and target-price checks from selling price, cost, quantity and optional discount, with a printable pricing record.

Live math canvas

Your numbers, formula and explanation together

Margin Calculator: 215 gross margin, gross profit, markup and target-price comparison. Margin Calculator uses the declared inputs to produce a transparent default result. Selling price: 100 per item; Cost price: 65 per item; Quantity: 10 items; Discount from selling price: 0 %; primary comparison: 100 and 65.

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Net selling price = selling price × (1 − discount percent ÷ 100). Gross profit per item = net selling price − cost price. Gross margin percentage = gross profit ÷ net selling price × 100. Markup percentage = gross profit ÷ cost price × 100. Target selling price = cost price ÷ (1 − target margin percent ÷ 100).
  1. Apply the formulaNet selling price = selling price × (1 − discount percent ÷ 100). Gross profit per item = net selling price − cost price. Gross margin percentage = gross profit ÷ net selling price × 100. Markup percentage = gross profit ÷ cost price × 100. Target selling price = cost price ÷ (1 − target margin percent ÷ 100).215 gross margin, gross profit, markup and target-price comparisonMargin Calculator uses the declared inputs to produce a transparent default result. Selling price: 100 per item; Cost price: 65 per item; Quantity: 10 items; Discount from selling price: 0 %; primary comparison: 100 and 65.

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Selling price
100 per item
Enter the listed or intended selling price before any optional discount.
Cost price
65 per item
Enter direct cost, buy-in cost or cost of goods sold for one item.
Quantity
10 items
Optional quantity for quote, batch, classroom or approval records.
Discount from selling price
0 %
Optional customer discount before margin is calculated on the net selling price.
Target gross margin
40 %
Optional target margin used to show the required selling price for the entered cost.

Resulting answer

215 gross margin, gross profit, markup and target-price comparison

Margin Calculator uses the declared inputs to produce a transparent default result. Selling price: 100 per item; Cost price: 65 per item; Quantity: 10 items; Discount from selling price: 0 %; primary comparison: 100 and 65.

Answer
215 gross margin, gross profit, markup and target-price comparison
Live support
Margin Calculator uses the declared inputs to produce a transparent default result. Selling price: 100 per item; Cost price: 65 per item; Quantity: 10 items; Discount from selling price: 0 %; primary comparison: 100 and 65.

Assumptions used

What this answer assumes

Best for product pricing, trade quotes, wholesale checks, quote approvals, classroom business maths and margin review records where price, cost, discount and target margin need to stay visible together.

  • Gross margin is measured against selling price or revenue, not against cost.
  • Cost price should include the direct cost basis you want tested: product cost, materials, landed cost or COGS. Overhead, labour, platform fees, returns and taxes are not added unless you include them in the cost input.
  • The optional discount reduces selling price before margin is calculated, because margin should be checked on the net revenue actually kept.
  • Markup is shown as a cross-check because markup and margin use different denominators and are not interchangeable.
  • This page is arithmetic for planning, quoting and classroom records. It is not accounting, tax, legal or pricing-strategy advice.

Master’s Tip

How to use the result well

Master’s Tip: print net selling price, cost and gross profit on separate lines. If a discount is approved later, the margin should be recalculated from the discounted revenue, not from the original shelf price.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Selling price
100 per item
Enter the listed or intended selling price before any optional discount.
Cost price
65 per item
Enter direct cost, buy-in cost or cost of goods sold for one item.
Quantity
10 items
Optional quantity for quote, batch, classroom or approval records.
Discount from selling price
0 %
Optional customer discount before margin is calculated on the net selling price.

Embeddable calculator

Embed this calculator

Copy a clean iframe version with the required CalculationTime attribution link built in.

Formula

Net selling price = selling price × (1 − discount percent ÷ 100). Gross profit per item = net selling price − cost price. Gross margin percentage = gross profit ÷ net selling price × 100. Markup percentage = gross profit ÷ cost price × 100. Target selling price = cost price ÷ (1 − target margin percent ÷ 100).

Worked example

For a 100 selling price, 65 cost and no discount, gross profit = 100 − 65 = 35. Gross margin = 35 ÷ 100 × 100 = 35%. Markup = 35 ÷ 65 × 100 ≈ 53.85%. Ten items produce 350 gross profit before overhead, tax or other costs.

Professional note

Master’s Tip: print net selling price, cost and gross profit on separate lines. If a discount is approved later, the margin should be recalculated from the discounted revenue, not from the original shelf price.

Regional and unit assumptions

Standard or basis: general gross-margin arithmetic for product pricing, quote review, classroom business maths and approval notes. It does not replace local accounting definitions, tax rules, invoice requirements or professional advice.

Assumptions and limitations

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Net selling price = selling price × (1 − discount percent ÷ 100). Gross profit per item = net selling price − cost price. Gross margin percentage = gross profit ÷ net selling price × 100. Markup percentage = gross profit ÷ cost price × 100. Target selling price = cost price ÷ (1 − target margin percent ÷ 100).

Standard or basis

Standard or basis: general gross-margin arithmetic for product pricing, quote review, classroom business maths and approval notes. It does not replace local accounting definitions, tax rules, invoice requirements or professional advice.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master’s Tip: print net selling price, cost and gross profit on separate lines. If a discount is approved later, the margin should be recalculated from the discounted revenue, not from the original shelf price.

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Questions

How do I calculate margin?

Subtract cost from net selling price to get gross profit, then divide gross profit by net selling price and multiply by 100.

What is the difference between margin and markup?

Margin divides profit by selling price. Markup divides profit by cost. Because the denominator is different, the two percentages are not the same.

Does a discount reduce margin?

Yes. A discount lowers net selling price. If cost stays the same, gross profit and gross margin percentage fall.

How do I calculate a target price from margin?

Use target selling price = cost ÷ (1 − target margin percentage ÷ 100). For example, a 60 cost at 40% target margin needs 60 ÷ 0.60 = 100 selling price.

What should I print for a margin pricing record?

Print selling price, discount, net selling price, cost, quantity, gross profit, gross margin, markup, target-margin price, formula, assumptions, page URL, date and approval notes.

Calculation note

Margin arithmetic is simple, but pricing mistakes often come from naming the wrong denominator. A visible record separates selling price, discount, cost, profit, margin and markup so a quote can be challenged before it becomes an invoice.

Margin reads profit as a share of selling price

Gross margin asks how much of the net selling price remains after direct cost. That makes it useful for product lines, quotes, classroom exercises and quick approval checks.

Markup starts from cost instead

Markup is useful when building a selling price from cost, but it is not the same as margin. Showing both percentages prevents a common pricing error.

A printable margin record keeps approvals clean

When discount, cost basis, quantity and target margin are printed beside the result, a manager, student, supplier or tradesperson can see exactly which assumption drove the price.

Sources and further readingHarvard Business School Online — How to calculate profit marginCorporate Finance Institute — Profit MarginU.S. Small Business Administration — Price your products