📊 Margin & Markup Calculator

See the margin and markup on any product from its cost and price — or work backwards: enter a target margin and get the exact price to charge.

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Profit per unit
Margin %
Markup %
Selling price

General information tools only — not tax or financial advice. Rates and rules vary by country and change over time; confirm important figures with a qualified accountant.

How to use the margin & markup calculator

Margin and markup are not the same number

They describe the same profit two different ways. Margin is profit as a percentage of the selling price — it is the number in your accounts. Markup is profit as a percentage of the cost — it is the number used when pricing. Confusing them is one of the most expensive mistakes in small-business pricing: a 20% markup is only a 16.7% margin.

Formulas. Profit = Price − Cost. Margin % = Profit ÷ Price × 100. Markup % = Profit ÷ Cost × 100. Price for a target margin = Cost ÷ (1 − margin ÷ 100).

Working backwards from margin

If your accounts target a gross margin — say 30% — use the second tab. Dividing cost by (1 − 0.30) gives the price that actually delivers a 30% margin; simply adding 30% to cost would not.

Example

Cost 80, price 100: profit is 20. Margin = 20 ÷ 100 = 20%. Markup = 20 ÷ 80 = 25%. And to earn a 20% margin on an 80 cost you must charge exactly 100 — try it in the second tab.

Frequently asked questions

Is a 50% markup the same as a 50% margin?

No. Cost 100 marked up 50% sells at 150, and the profit of 50 is only 33.3% of that price. A true 50% margin on a cost of 100 needs a price of 200.

Which should my business track?

Track margin in your accounts (it matches your profit-and-loss statement) and use markup carefully when setting prices — ideally by converting with this tool.

Can margin be over 100%?

No. Margin is a share of the price, so it is always below 100%. Markup can exceed 100% when profit is larger than cost.

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