Profit Margin and Markup Calculator
Enter a cost and a selling price to see the profit, the profit margin and the markup. Or enter a cost and the margin or markup you want to find the price, or a price and a margin to find the cost. Copy any result. A short note explains the difference, because margin and markup are often mixed up. Everything runs in your browser.
Margin and markup are not the same. Margin is profit as a share of the selling price, so it can never reach 100%. Markup is profit as a share of the cost, so it can be any size. A 50% markup is a 33.33% margin.
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Math & MoneyAbout the Profit Margin and Markup Calculator
Margin and markup both describe profit, but they measure it against different amounts. Profit margin is profit divided by the selling price. Markup is profit divided by the cost. A product that costs 60 and sells for 100 has a profit of 40, a margin of 40% and a markup of 66.67%. Because the price is larger than the cost, margin is always the smaller number, and it can never reach 100%, while markup can be any size. A markup of 50% is a margin of 33.33%, and a margin of 50% is a markup of 100%. To set a price from a margin, divide the cost by one minus the margin: a cost of 60 and a margin of 40% gives a price of 100. To set a price from a markup, multiply the cost by one plus the markup. To find the cost from a price and a margin, multiply the price by one minus the margin. This is the gross profit on one product. It does not subtract overheads, tax, shipping or discounts, so it is not your net margin. Amounts are rounded to the cent and percentages to two decimals. We checked 20,000 random costs and margins, and the margin worked back from each rounded price was within 0.01 percentage points of the margin asked for. Everything runs in your browser and nothing is uploaded.
What is the difference between margin and markup?▾
Margin is profit divided by the selling price. Markup is profit divided by the cost. For a cost of 60 and a price of 100, the profit is 40, so the margin is 40% and the markup is 66.67%. Markup is always the larger of the two.
How do I calculate the selling price from a margin?▾
Divide the cost by one minus the margin as a decimal. A cost of 60 and a margin of 40% gives 60 divided by 0.6, which is a price of 100. Adding 40% to the cost would give a price of 84, a lower margin than you wanted.
How do I calculate the selling price from a markup?▾
Multiply the cost by one plus the markup as a decimal. A cost of 60 and a markup of 50% gives 60 times 1.5, which is a price of 90.
Why can a margin not be 100%?▾
Margin is profit divided by the price. For it to be 100%, the cost would have to be zero. At any margin below 100% the price is the cost divided by one minus the margin, and that grows without limit as the margin approaches 100%.
Is this the gross or the net margin?▾
It is the gross margin of one product: the price minus the cost of that product. It does not subtract overheads, tax, shipping or discounts, so your net margin will be lower.