Profit Margin and Markup Calculator
Enter cost and selling price to see profit, margin and markup together. Or enter a cost with the margin or markup you want and get the selling price.
Result
- Selling price
- 100.00
- Cost
- 60.00
Formula
- Profit = selling price − cost
- Margin = profit ÷ selling price × 100
- Markup = profit ÷ cost × 100
- Price for a target margin = cost ÷ (1 − margin ÷ 100)
- Price for a target markup = cost × (1 + markup ÷ 100)
How the Profit Margin and Markup Calculator works
Margin and markup describe the same profit from two viewpoints. Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Markup is always the larger number.
Confusing the two is a common pricing mistake. A 50 percent markup gives a margin of only 33.3 percent, and a 50 percent margin needs a 100 percent markup.
Worked example
An item that costs 60.00 and sells for 100.00 makes a profit of 40.00. The margin is 40 ÷ 100 = 40 percent and the markup is 40 ÷ 60 = 66.67 percent.
Frequently asked questions
What is the difference between margin and markup?
Both use the same profit. Margin divides it by the selling price, and markup divides it by the cost. A product bought for 50 and sold for 75 has a 33.3 percent margin and a 50 percent markup.
How do I price for a 30 percent margin?
Divide the cost by 0.70. An item costing 35 should sell for 50.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup), using decimals. A 25 percent markup is 0.25 ÷ 1.25 = 20 percent margin.
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