Margin Calculator
Enter your cost and selling price to see profit, margin and markup. Add a target margin to find the price you should charge.
How the margin calculator works
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. A product that costs $60 and sells for $100 earns $40, which is a 40% margin but a 66.67% markup.
To price for a target margin, divide your cost by one minus the margin. A 40% margin on a $60 cost means a price of $100. Mixing up margin and markup is a common pricing mistake, so check which one a supplier or marketplace quotes.
The formulas
Example: Cost $60, price $100: profit $40, margin 40%, markup 66.67%.
Free pricing tips for your business
Get short, practical tips on pricing jobs and using our free calculators. No spam, unsubscribe any time.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price. Markup divides profit by the cost. Markup is always the larger number for the same sale.
How do I calculate gross margin?
Subtract cost from price, divide by price, and multiply by 100.
How do I price a product for a 30% margin?
Divide your cost by 0.70. A $70 cost needs a $100 price.
What is a good profit margin?
It varies by industry. Retail often sits between 20% and 50% gross margin, software is much higher.
Is margin the same as profit?
No. Profit is a dollar amount. Margin is that profit expressed as a percent of the selling price.
Need a custom calculator or spreadsheet built for your business?
Talk to usMore free tools: All free calculators · Discount calculator · Overtime calculator · Compound interest calculator