Margin Calculator
Find profit, gross margin and markup from cost and selling price — or the price you need for a target margin.
Inputs
Result
Margin
25%
- Profit
- 25.00
- Markup
- 33.33%
Formula
Margin = (Price − Cost) ÷ Price × 100
How it works
Margin tells you what share of the selling price is profit. Enter what something costs you and what you sell it for, and the calculator returns the profit, the gross margin and the equivalent markup.
Switch to Price from margin to go the other way: enter your cost and the margin you want, and get the selling price you need to charge.
Margin and markup are often confused. Margin divides profit by the price; markup divides profit by the cost. A 25% margin is a 33.3% markup.
Formula
- Profit = Price − Cost
- Margin % = Profit ÷ Price × 100
- Markup % = Profit ÷ Cost × 100
- Price for a target margin = Cost ÷ (1 − Margin ÷ 100)
Example
A product that costs 75 and sells for 100
- 1Profit = 100 − 75 = 25
- 2Margin = 25 ÷ 100 = 25%
- 3Markup = 25 ÷ 75 = 33.33%
25 profit, 25% margin, 33.33% markup.
Frequently asked questions
What is the difference between margin and markup?
Both measure profit, but against different bases. Margin is profit as a percentage of the selling price; markup is profit as a percentage of cost. Margin is always lower than markup for the same sale.
How do I price a product for a 40% margin?
Divide the cost by (1 − 0.40). A cost of 60 needs a price of 60 ÷ 0.6 = 100. Use the Price from margin mode to do it instantly.
Can margin be 100% or more?
No. A 100% margin would mean the cost is zero. Markup, on the other hand, can be any positive value.
Which currency does it use?
Any. The calculator works with plain amounts, so enter values in your own currency.