Enter cost and selling price to get the profit, profit margin and markup percentages.
How the margin calculator works
Margin and markup describe profit differently, and mixing them up is a common pricing mistake. Enter your cost and selling price and this calculator returns both: margin (profit as a share of price) and markup (profit as a share of cost).
Retailers and freelancers use these to price products and services consistently.
A worked example
On the values this calculator opens with, the profit margin is 40%. Underneath, Profit comes out at $40 and Profit margin at 40%. Change any field and every figure updates as you type.
Getting your answer
- Enter the item’s cost.
- Enter the selling price.
- Read the profit, margin and markup.
The calculation
profit = price − cost
margin = profit ÷ price × 100
markup = profit ÷ cost × 100
FAQ
What’s the difference between margin and markup?
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 50% markup is only a 33% margin.
How do I price for a target margin?
Divide the cost by (1 minus the margin as a decimal). For a 40% margin on a $60 cost, price = 60 ÷ 0.6 = $100.
Which should I use?
Retail and finance usually think in margin; many trades quote markup. Know which one a figure refers to before comparing.