Calculate gross margin percentage from cost and selling price, or find the selling price or cost needed for a target margin, with gross profit shown.

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Percentage To Margin Formula

The following formula is used to calculate the margin (M) from the cost (C) and selling price (P):

M = ((P - C) / P) × 100

Variables:

  • C is the cost price in currency units
  • P is the selling price in currency units
  • M is the margin percentage (%)

Margin represents gross profit as a share of selling price. Choose the value to calculate, then enter the other two values in the same currency. It differs from markup, which divides profit by cost.

Margin (%) to Price Multiplier (Price = Cost ÷ (1 − Margin/100))
Margin (%) Price Multiplier (× Cost)
5%1.053
10%1.111
12.5%1.143
15%1.176
20%1.250
25%1.333
30%1.429
33⅓%1.500
35%1.538
40%1.667
45%1.818
50%2.000
55%2.222
60%2.500
62.5%2.667
65%2.857
66⅔%3.000
70%3.333
75%4.000
80%5.000
Selling Price = Cost ÷ (1 − Margin/100). Multipliers are rounded to three decimals. Example: 40% margin and $100 cost give $100 ÷ 0.60 = $166.67, rounded to cents.

What is Percentage To Margin?

Gross margin is the percentage of revenue that exceeds the cost of goods sold. It indicates how much profit is made on each unit of sale relative to the selling price.

How to Calculate Percentage To Margin?

Follow these steps to calculate margin, selling price, or cost using this calculator:

  1. Determine the two known variables among cost (C), selling price (P), and margin (M).
  2. Select Gross margin, Selling price or Cost in the calculator.
  3. Enter the known values into the calculator fields.
  4. Click “Calculate” to find the missing value.
  5. Verify your result using the formulas provided.

Example Problem:

Suppose the cost (C) is 50 and the selling price (P) is 80. Calculate the margin percentage.

C = 50

P = 80

M = ((80 − 50) / 80) × 100 = 37.5%.