Accounting Calculator
Markup Calculator
Compare markup and gross margin using product cost and selling price, with safe handling for zero denominators.
Calculator
Formulas
- Profit = Selling price − Product cost
- Markup = Profit ÷ Product cost × 100%
- Gross margin = Profit ÷ Selling price × 100%
Worked Example
Example: cost of 80 and selling price of 120 produces profit of 40, markup of 50% and gross margin of 33.33%.
Result Explanation
Markup is cost-based, while gross margin is revenue-based.
Use Cases
- Retail pricing
- Quote margin checks
- Price changes after cost updates
Frequently Asked Questions
Can cost be zero?
Profit can be shown, but markup cannot be calculated because cost is the denominator.
Can profit be negative?
Yes. A selling price below cost produces negative profit and rates.
Accounting and Tax Disclaimer
These calculators provide general accounting, tax and business estimates only. Rules differ by jurisdiction, industry and accounting policy. Confirm formal filings, bookkeeping entries, audits and business decisions against applicable regulations and professional advice.
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