Profit Margin & Markup Calculator
Enter the cost and the selling price, margin, or markup. Get the other three, and see why a 50% markup is only a 33% margin.
Shows total cost, revenue, and profit for the batch.
Selling price
Margin (profit ÷ price)
Markup (profit ÷ cost)
The selling price is below cost, so each sale loses money.
- Total revenue
Enter the cost and one more value to see the price, profit, margin, and markup.
Margin to markup table
The markup you need to reach a margin. Tap a row to use that margin.
| Margin | Markup | Price |
|---|---|---|
About the Profit Margin Calculator
The profit margin calculator works out the selling price, profit, margin, and markup from the cost and any one of the other values. Margin is profit as a share of the selling price; markup is profit as a share of the cost. They are easy to mix up, and pricing with one when you meant the other costs real money.
How to use it
- 1 Enter what one item costs you.
- 2 Choose what you know: the selling price, the margin you want, or the markup you add.
- 3 Enter that value to see the price, profit, margin, and markup.
- 4 Open “Quantity” for batch totals, or tap a row in the margin to markup table to price for that margin.
Frequently asked questions
What is the difference between margin and markup?
Both compare profit with something else. Margin divides the profit by the selling price; markup divides it by the cost. An item that costs 60 and sells for 90 has a profit of 30: that is a 33.3% margin (30 ÷ 90) but a 50% markup (30 ÷ 60). Margin is always smaller than markup.
How do I calculate profit margin?
Subtract the cost from the selling price to get the profit, divide the profit by the selling price, and multiply by 100. Selling at 125 something that costs 100 gives a profit of 25 and a margin of 25 ÷ 125 × 100 = 20%.
How do I set a price for a target margin?
Divide the cost by (1 − margin ÷ 100). For a 40% margin on an item that costs 60: 60 ÷ 0.6 = 100. Adding 40% to the cost (84) would only give a 28.6% margin.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100. A 50% markup is a 33.3% margin, and a 100% markup (doubling the cost) is a 50% margin. To go the other way, markup = margin ÷ (100 − margin) × 100.
Can a margin be 100% or more?
No. A 100% margin would mean the item cost nothing. Markup has no upper limit: selling for three times the cost is a 200% markup but a 66.7% margin.
Is this gross or net margin?
Gross margin, for one product: selling price minus what the item cost you. Net margin also takes off rent, wages, tax, and other running costs, so it is lower.