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Profit Margin Calculator – Margin vs Markup

Calculate profit, gross margin and markup from cost and price, or find the selling price for a target margin or markup.

  • Free, no sign-up
  • Runs in your browser, nothing uploaded

About the Profit Margin Calculator

Work out profit, gross margin and markup from a cost and selling price, or find the price you need to charge to hit a target margin or markup.

Key features

  • Profit, margin and markup from cost and selling price
  • Find the selling price for a target margin
  • Find the selling price for a target markup
  • Clear margin vs markup comparison
  • Multiple currencies
  • Results update as you type

Price products with confidence

Getting pricing right is essential for any business. Enter your cost and selling price to see profit, margin and markup, or start from a target margin to find the price you should charge.

Formulas

MetricFormula
Profitprice − cost
Marginprofit ÷ price × 100
Markupprofit ÷ cost × 100
Price from margincost ÷ (1 − margin)
Price from markupcost × (1 + markup)

Margin vs markup table

MarkupMargin
25%20%
50%33.3%
100%50%
150%60%
200%66.7%

Margin can never reach 100%, but markup can be any size.

Example

A product costs 45 to make and ship.

  • Sell at 75: profit 30, margin 40%, markup 66.7%.
  • Target 50% margin: price = 45 ÷ 0.5 = 90.
  • Target 50% markup: price = 45 × 1.5 = 67.50 (margin 33.3%).

Add tax to your price with the Sales Tax Calculator, or calculate customer discounts with the Discount Calculator.

How to use the Profit Margin Calculator

  1. Enter your numbers in the fields above. Units and options can be changed at any time.
  2. The result updates instantly as you type; there's no calculate button to press.
  3. Check the breakdown under the main result for the details behind the number.
  4. Adjust the inputs to compare scenarios, for example a different rate or term.

Frequently asked questions

What's the difference between margin and markup?

Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. Buying at 60 and selling at 100 gives a 40% margin but a 66.7% markup.

How do I price a product for a 30% margin?

Divide the cost by (1 − 0.30). A cost of 70 needs a price of 70 ÷ 0.7 = 100. Adding 30% to the cost (91) only gives a 23% margin.

What is a good profit margin?

It depends on the industry. Grocery retail often runs at single-digit net margins, while software can exceed 70% gross margin. Compare against businesses like yours.

Is this gross or net margin?

It's gross margin on a single item: price minus the cost you enter. Include shipping, fees and packaging in the cost for a more realistic number.

Are these calculators accurate?

They use standard, published formulas (for example the amortization formula for loans, Mifflin-St Jeor for calories and the U.S. Navy method for body fat) and are tested against known reference values. Results are estimates for planning, not professional advice.

Is my data stored?

No. All calculations run in your browser and nothing you enter is sent to a server.

Do the calculators work on my phone?

Yes. Every calculator is designed for mobile, tablet and desktop.

Last updated:

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