Cost Margin Calculator

Formatting only. This does not change the calculation.
Used when solving for the price or cost.
Overheads below the gross profit line: salaries, rent, marketing.
Cost
60
Profit Margin Calculator
Gross profit
40
Gross margin
40 %
Equivalent markup
66.6667 %
Operating profit
40
Operating margin
40 %
Net profit
40
Net margin
40 %
Selling price
100
Profit per unit
40
Total profit across all units
40
Worked out from Gross margin = (price - cost) / price; markup = (price - cost) / cost and 3 other sources.

How this is worked out

3 steps
  1. Cost = price x (1 - margin) = 100 x 0.6 = 60
  2. Margin = 40 / 100 = 40%
  3. Markup = 40 / 60 = 66.67%

Results are general information, not financial, tax, legal, medical or engineering advice.