100% Markup vs Gross Margin
A 100% markup doubles the cost, but the gross margin is only 50%, not 100%.
How to use this tool
- Enter cost of goods sold and selling price in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your gross margin and the full breakdown beneath it.
See how doubling your cost with a 100% markup translates to a 50% gross margin.
Frequently asked questions
- What is the difference between margin and markup?
- Gross margin = profit / selling price. Markup = profit / cost. For the same product, markup is always higher than margin. For example, a 50% markup on a $60 cost gives a $90 price and a 33.3% margin.
- Which should I use for pricing?
- Retailers typically think in terms of margin (% of revenue). Manufacturers often use markup (% over cost). Know which your industry uses to avoid miscommunication with partners and buyers.