Your estimated markup and margin
Markup divides the profit by the cost. Margin divides the same profit by the selling price. The two percentages are never the same number unless the profit is zero.
Free tool · Canada · Estimate only
Markup and Margin Calculator
Enter a cost and a selling price to see the gross profit, the markup percentage and the gross margin percentage. You can also enter a markup or margin you want and see the selling price it points to. This is an estimate only — plain arithmetic on the numbers you enter. It is not advice.
Written November 13, 2026
What one unit costs you, before tax.
What a customer pays for one unit, before tax.
Leave blank if you do not need a target price from a markup.
Leave blank if you do not need a target price from a margin. A margin of 100% or more has no selling price.
How the estimate works
The formula. Gross profit = selling price − cost. Markup % = gross profit ÷ cost × 100. Gross margin % = gross profit ÷ selling price × 100. Selling price for a target markup = cost × (1 + markup % ÷ 100). Selling price for a target margin = cost ÷ (1 − margin % ÷ 100).
Assumptions printed. The result uses exactly the numbers you entered, for one unit, before tax, with no other costs added.
Sources: No external figure is used on this page. Every number in the result comes from the numbers you enter and the formula above.
Next step: read the full step-by-step guide: How to Start a Bakery Business in Canada