Markup and margin calculator
Set prices and check profit for products you sell. It shows both markup and margin, which are often confused, from whichever pair of values you know.
- Runs in your browser
- Free, no account needed
- Copy or download the result
Result
Example
Known values: Cost and price Cost: 40 Selling price: 60 Markup: 50 Margin: 33.33
Selling price: $60.00 Profit per unit: $20.00 Markup: 50.00% Margin: 33.33% Markup is profit as a percent of cost. Margin is profit as a percent of the selling price, so margin is always lower than markup for a profitable sale. A 50% markup is a 33.33% margin.
How to use the markup and margin calculator
- Under Known values, choose Cost and price, Cost and markup %, or Cost and margin %.
- Enter the Cost.
- Enter the Selling price, Markup or Margin to match your choice, then press Run.
- Press Copy result to keep the numbers.
How it works
Markup = profit / cost x 100. Margin = profit / selling price x 100, where profit = price - cost.
From markup, price = cost x (1 + markup). From margin, price = cost / (1 - margin).
Margin must be less than 100% because profit can never be the whole price when cost is above 0. Cost must be greater than 0.
If the price is below cost, the result shows a loss per unit and negative markup and margin.
Everything runs in your browser. Your input is not uploaded or stored.
Questions and answers
What is the difference between markup and margin?
Markup compares profit to cost. Margin compares profit to the selling price. A $40 item sold for $60 has a 50% markup and a 33.33% margin.
How do I price for a target margin?
Divide the cost by 1 minus the margin as a decimal. For a 40% margin on a $30 cost, the price is $30 / 0.6 = $50.
Why can't margin be 100%?
A 100% margin would mean the item cost nothing. Any cost above 0 keeps margin below 100%.