Profit Margin & Markup Calculator
Calculate profit margin, markup percentage and selling price from cost and revenue.
This margin and markup calculator works out the selling price, profit, profit margin and markup for a product from its cost. Margin and markup are often confused because they describe the same profit from two different angles: margin is profit as a percentage of the selling price, while markup is profit as a percentage of the cost.
Start from whatever you know. Enter a selling price to see the resulting margin and markup, enter a target margin to find the price you need to charge, or enter a markup to price a product up from cost. Because margin uses price as the base and markup uses cost, a given markup always works out to a smaller margin percentage.
How to use it
- 1Choose whether you know the selling price, a target margin or a target markup.
- 2Enter the unit cost and choose your currency.
- 3Enter the price, margin or markup depending on the mode you picked.
- 4Read the selling price, profit, margin percentage and markup percentage.
Frequently asked questions
What is the difference between margin and markup?+
Markup is profit divided by cost, while margin is profit divided by the selling price. A 50% markup on a $40 cost gives a $60 price, which is only a 33.3% margin.
How do I convert markup to margin?+
Margin = markup ÷ (1 + markup). For example a 50% markup converts to 0.5 ÷ 1.5 = 33.3% margin. This calculator does the conversion for you in every mode.
Which should I use to set prices?+
Retailers usually think in margin because it maps directly to how much of each sale is profit, while markup is handy when you price up from a known cost. This tool shows both at once.
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