Margin Calculator

Calculate profit margin and markup from your cost and selling price. See your gross profit, margin percentage and markup percentage side by side.

Cost & selling price

Enter what an item costs you and what you sell it for to get profit, margin % and markup %.

Gross profit
Profit margin
Markup

Price from target margin

Set a target profit margin and your cost to find the selling price you should charge.

Required selling price
Profit per unit

Profit margin is profit as a share of the selling price; markup is profit as a share of the cost. They look similar but are not interchangeable — a 50% markup is only a 33% margin.

Margin vs markup

  • Margin % = (price − cost) / price × 100
  • Markup % = (price − cost) / cost × 100
  • Price from margin = cost / (1 − margin%)

Examples

  • Cost $60, sell $100 → $40 profit, 40% margin, 66.7% markup
  • 40% target margin on $60 cost → sell at $100
  • Double your cost (100% markup) = 50% margin

Frequently asked questions

Why don't margin and markup match?

They use different bases. Margin divides profit by the selling price; markup divides it by the cost. Margin is always lower than the equivalent markup.

Which should I use for pricing?

Margin is the figure reported on income statements and most useful for comparing profitability. Markup is handy for setting prices quickly from a known cost.

Just for the giggles, much love.
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