Margin and Markup Calculator
Free margin and markup calculator: profit margin and markup from cost and price, the selling price for a target margin, and the margin-markup conversion.
Markup and margin equivalents
| Markup | Margin |
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What it does
This calculator works out profit, margin and markup, the three numbers behind any price. Margin is the profit as a percentage of the selling price; markup is the profit as a percentage of the cost. They are often confused: buying at 60 and selling at 100 is a 40% margin but a 66.67% markup. Type the values in any of the sentences to get the selling price for a target margin, the price from a markup, the highest cost you can pay for a given price and margin, or convert between markup and margin.
How to use it
- Choose the sentence that matches what you know.
- Type the cost, the price or the percentage; the result updates as you type.
- Use the table to see how common markups translate into margins.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
What is the difference between margin and markup?
Both measure the same profit, but over different bases. Margin divides the profit by the selling price, markup divides it by the cost. With a cost of 60 and a price of 100, the profit is 40: a margin of 40% and a markup of 66.67%. Markup is always higher than margin.
How do I calculate the price for a target margin?
Divide the cost by one minus the margin: for a 40% margin on a cost of 60, the price is 60 ÷ 0.6 = 100. Adding 40% to the cost (60 × 1.4 = 84) gives a markup of 40%, which is only a 28.6% margin.
Why can't the margin be 100%?
A 100% margin would mean the whole price is profit, which is only possible if the cost is zero. As the margin approaches 100%, the required price grows without limit. Markup has no such limit: a markup of 300% means selling at four times the cost.
Should the cost include taxes and shipping?
For a realistic margin, include everything you pay to have the product ready to sell: purchase price, shipping, packaging and non-recoverable taxes. If you charge sales tax or VAT on top, calculate the margin on the price before tax.