Sales Calculator: Cost, Revenue, Profit, Margin & Markup

Enter Calculation

Enter values you know: Cost and Revenue Cost and Profit Cost and Margin Cost and Markup Revenue and Profit Revenue and Margin Revenue and Markup Profit and Margin Profit and Markup

First value (A)

Second value (B)

Dollar values: Cost, Revenue, Profit. Percent values: Margin, Mark Up. At least one known value must be a dollar value.

Formula

Show calculation steps (1)

1. Solve revenue from cost and margin

   

   When you know cost C and gross margin g (as a fraction), revenue is cost divided by one minus the margin.

Results

Gross Profit

33.33

currency units ($)

Gross Profit	33.33
Cost	100.00
Revenue	133.33
Mark Up	33.33%
Gross Margin	25.00%

What this sales calculator does

This tool works with the five core figures of any single sale or product line: Cost (\(C\)), Revenue or selling price (\(R\)), Gross Profit (\(P\)), Gross Margin (\(G\), a percent of revenue) and Mark Up (\(M\), a percent of cost). Supply any two of them — as long as at least one is a dollar amount — and the calculator instantly returns the other three, so you always see all five together.

How to use it

Pick the pair you already know from the dropdown, for example "Cost and Margin." Enter your first value in field A and your second in field B (dollar fields are plain amounts, percent fields are entered as numbers like 25 for 25%). Press calculate and read off the full breakdown. Margin and markup cannot be combined on their own because two percentages never pin down an actual dollar figure.

The formulas explained

Everything follows from three relations: profit is revenue minus cost (\(P = R - C\)), gross margin is profit divided by revenue (\(G = \frac{P}{R}\)), and markup is profit divided by cost (\(M = \frac{P}{C}\)). Percentages are converted to fractions first (\(g = G/100\), \(m = M/100\)). A handy rearrangement: if you know cost and margin, \(R = \frac{C}{1 - g}\); if you know revenue and markup, \(C = \frac{R}{1 + m}\).

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Margin divides profit by revenue; markup divides profit by cost.

Revenue (\(R\)) equals cost (\(C\)) plus gross profit (\(P\)).

Worked example

Suppose your cost is $100 and you want a 25% gross margin. Then \(g = 0.25\), $$R = \frac{100}{1 - 0.25} = \frac{100}{0.75} = \$133.33$$ Gross profit $$P = 133.33 - 100 = \$33.33$$ and markup $$M = \frac{33.33}{100} = 33.33\%$$ So a 25% margin corresponds to a 33.33% markup on cost.

FAQ

What is the difference between margin and markup? Margin measures profit against the selling price (revenue), while markup measures the same profit against your cost. Markup is always the larger percentage.

Why can't I enter only margin and markup? Two percentages describe the relationship between cost and price but contain no actual money, so no dollar figures can be derived. At least one of cost, revenue or profit is required.

Can profit be negative? Yes. If revenue is below cost the calculator returns a negative profit, margin and markup, representing a loss.