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Margin and Markup Calculator 2026

Calculate gross margin, markup and selling price in 3 modes. Includes a comparison table for common markup rates.

Markup vs Margin Comparison Table

Margin values at common markup rates for 100 ₺ cost

Markup %Selling PriceProfitMargin %
20%120,00 20,00 16,67%
30%130,00 30,00 23,08%
40%140,00 40,00 28,57%
50%150,00 50,00 33,33%
100%200,00 100,00 50,00%

Know Your Margin to Price Correctly

Margin and Markup Calculation: The Foundation of Pricing

Gross margin and markup are the two fundamental metrics of pricing decisions. Both measure the same gross profit but use different reference points. Markup uses cost as its base while margin uses the selling price. Pricing mistakes made without understanding this difference can significantly drag expected profit below target.

Formulas: How to Calculate Markup and Margin?

Gross Margin Formula

Gross Margin % = (Selling Price - Cost) / Selling Price x 100

Markup Formula

Markup % = (Selling Price - Cost) / Cost x 100

Selling Price from Markup

Selling Price = Cost x (1 + Markup / 100)

Selling Price from Margin

Selling Price = Cost / (1 - Margin / 100)

How to Use the Calculator?

The calculator offers 3 different modes:

  • Cost + Selling Price: Calculate margin and markup from known cost and selling price.
  • Cost + Markup %: Automatically find the selling price based on your desired markup rate.
  • Cost + Margin %: Calculate the selling price based on your target gross margin rate.

This tool is for informational purposes only. When making pricing decisions, also consider market conditions, competition and fixed costs.

Frequently Asked Questions

Markup is the percentage added on top of cost: with a 50% markup on 100 ₺ cost, the selling price is 150 ₺. Gross margin is the ratio of profit to selling price: in the same example, gross margin is 33.33%. Both measure the same profit from different reference points — markup uses cost as the base, while margin uses revenue.

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