Margin and Markup Calculator

Find your gross profit margin and markup from any two known values: cost and price, cost and margin, cost and markup, price and margin, or price and markup. The calculator returns cost, selling price, profit, margin and markup, and the totals for any quantity. Example: a product that costs $60 and sells for $100 has a profit of $40, a gross margin of 40% and a markup of 66.67%.

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I know

Cost

Selling price

Margin %

Markup %

Units sold (optional)

Shows total revenue, cost and profit.

How to use the Margin and Markup Calculator

Choose which two values you know: cost and price, cost and margin, cost and markup, price and margin, or price and markup.
Fill in those two boxes (the others are ignored).
Optional: enter the number of units sold to see totals.
Press Calculate to see cost, price, profit, margin and markup with steps.

Formula and method

Margin % = (price − cost) ÷ price × 100

Markup % = (price − cost) ÷ cost × 100

Price from cost and margin: price = cost ÷ (1 − margin). Price from cost and markup: price = cost × (1 + markup).

Convert: markup = margin ÷ (1 − margin), and margin = markup ÷ (1 + markup).

Example: cost $60, price $100: profit $40, margin 40%, markup 66.67%.

Margin vs markup: the key difference

Both describe profit, but with different bases. Margin divides by the selling price, so it can never reach 100%. Markup divides by cost, so it can be above 100%. A product bought for $50 and sold for $100 has a 50% margin and a 100% markup. Mixing them up is the most common pricing error.

Margin to markup conversion

Margin	Markup	Price on $100 cost
10%	11.1%	$111.11
20%	25.0%	$125.00
25%	33.3%	$133.33
30%	42.9%	$142.86
40%	66.7%	$166.67
50%	100.0%	$200.00
60%	150.0%	$250.00

Worked example: price for a target margin

You pay $45 for an item and want a 35% margin. Price = 45 / (1 − 0.35) = $69.23. The profit is $24.23, which is 35% of the price. Using a 35% markup instead would give only $60.75 and a 25.9% margin.

Gross margin vs net margin

This calculator shows gross margin: price minus the direct cost of the product. Net margin also subtracts operating costs, taxes, shipping and fees. A healthy gross margin must cover those costs before any money is left over.

Typical margins by industry

Margins vary widely: groceries often run in the low teens, software above 70%, restaurants 60 to 70% gross on food. Compare against your own sector, not a global figure.

Discounts and margin

A 20% discount on a product with a 40% margin cuts margin to 25%, not 20%: price $100 with cost $60 becomes price $80 and profit $20, which is 25% of $80. Use the calculator on the discounted price to check.

Common mistakes

Adding the margin to cost as if it were a markup, using the wrong base, and forgetting that sales tax is not part of the price. Compute the margin on the pre-tax price.

Accuracy and limits

The arithmetic is exact and rounded to two decimals. It is a pricing aid, not accounting or tax advice.

Frequently asked questions

How do I calculate profit margin?

Subtract cost from price and divide by price: (price − cost) / price × 100.

What is the difference between margin and markup?

Margin is profit as a percent of price; markup is profit as a percent of cost.

How do I price for a target margin?

Divide cost by (1 − margin). For a 40% margin on $60 cost: 60 / 0.6 = $100.

Is a 50% markup a 50% margin?

No. A 50% markup is a 33.3% margin.

Can margin be negative?

Yes, if the price is below cost.

Sources

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Effortless Math Team

55 minutes ago