Profit Margin Calculator: Margin, Markup and Price
Work out gross profit, margin and markup from a cost and a selling price, or find the selling price that gives a target margin or markup. Handles losses and a zero cost, exact to the cent.
Type the cost and the selling price to see the profit, margin and markup.
About the Profit Margin Calculator
The Profit Margin Calculator works out how much you make on a sale and expresses it two ways: as a margin, the profit as a share of the selling price, and as a markup, the profit as a share of the cost. It has three modes. Cost and price takes what an item cost you and what you sell it for. Cost and margin finds the selling price that gives the margin you want. Cost and markup finds the selling price from a markup on cost.
Margin and markup are easy to mix up, and the gap between them grows quickly: a 50 percent markup is only a 33.33 percent margin. Every result shows both, so you can quote either. Money is worked out in whole cents. A price found from a percentage rounds once, half up, and the profit is that rounded price minus the cost, so the figures always add up. A sale below cost is labelled as a loss, and a cost of zero gives a 100 percent margin with an undefined markup instead of an error.
How to use it
Cost and price
Type the cost and the selling price. The profit, the margin and the markup appear as you type.
Target margin or markup
Choose Cost and margin or Cost and markup, type the cost and the percentage you want, and read the selling price and the profit. The other percentage is shown too.
The formulas
With a cost , a selling price and the profit :
To find the price from a margin or a markup , and to convert one into the other:
Worked examples
- Cost 60, price 100. The profit is 40.00, the margin and the markup .
- Selling at a loss. Cost 120, price 100: a loss of 20.00, a margin of −20 percent and a markup of −16.67 percent.
- A 20% margin on a cost of 50. , a profit of 12.50 and a markup of 25 percent.
- A 33% margin on a cost of 10. , so the price is 14.93, the profit 4.93 and the markup 49.25 percent.
- A 25% markup on a cost of 40. , which is a 20 percent margin.
Assumptions
The margin here is gross margin. It leaves out overheads, shipping, payment fees and tax, so your net margin will be lower; treat the result as an estimate. To add sales tax or VAT to the price you choose, use the Sales Tax Calculator. To see what a sale price does to your margin, the Discount Calculator works out the reduced price, and the Percentage Calculator handles other percentage changes.
Privacy
Nothing is uploaded; every calculation runs in your browser and never leaves your device. The costs and prices you type stay on this page and are gone when you close or reload it.
Frequently asked questions
How do I calculate profit margin?
Take the cost away from the selling price to get the profit, then divide the profit by the selling price and multiply by 100. An item that costs 60.00 and sells for 100.00 makes 40.00 of profit, a margin of 40 percent.
What is the difference between margin and markup?
Both compare the same profit with a different base. Margin divides the profit by the selling price; markup divides it by the cost. A profit of 40.00 on a cost of 60.00 and a price of 100.00 is a 40 percent margin but a 66.67 percent markup.
How do I find the selling price for a target margin?
Divide the cost by 1 minus the margin as a decimal. For a 20 percent margin on a cost of 50.00, the price is 50 ÷ 0.8 = 62.50. Choose Cost and margin and the calculator does this, rounding the price to the cent.
Why can the margin not be 100 percent or more?
A margin is a share of the selling price, and the profit can never be the whole price unless the cost is zero. The formula divides by 1 minus the margin, so at 100 percent there is no price to find. A markup has no such limit.
What happens when I sell at a loss?
If the selling price is below the cost, the profit is negative and the result is labelled Loss. Selling for 100.00 an item that cost 120.00 is a loss of 20.00, a margin of minus 20 percent and a markup of minus 16.67 percent.
Is this gross or net margin?
Gross margin. It compares the selling price with the direct cost of the item only, and leaves out overheads, shipping, fees and tax. Net margin takes those off as well, so it is always lower. Treat the result as an estimate.