Profit Margin and Markup Calculator
Price products correctly: find the margin and markup from cost and price, or the selling price needed for a target margin or markup.
Result
Enter your values and select Calculate to see the result.
How to use this calculator
- Choose what you know: cost and price, cost and target margin, or cost and markup.
- Enter the values. The result shows the selling price, profit, margin and markup together.
Formula
profit = price − costmargin = profit ÷ price × 100%markup = profit ÷ cost × 100%- Price from margin:
cost ÷ (1 − margin) - Price from markup:
cost × (1 + markup)
Worked example
Cost 60, price 100
Profit is 40. Margin = 40 ÷ 100 = 40%. Markup = 40 ÷ 60 = 66.67%.
A 50% markup
Cost 60 × 1.5 = selling price 90, which is only a 33.33% margin.
Assumptions and limitations
- This is gross margin on a single item; overheads, shipping and taxes are not included unless you add them to the cost.
- Margin can never reach 100% because that would mean the item cost nothing.
Frequently asked questions
What is the difference between margin and markup?
Both use the same profit. Margin divides it by the selling price; markup divides it by the cost. Markup is always the larger percentage for a profitable sale.
Should sales tax be included in the price?
No. Use prices excluding sales tax or VAT, because the tax is passed on to the government and is not profit.