Profit Margin Calculator
Calculate profit, margin and markup, or find the selling price for a target margin.
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About the Profit Margin Calculator
Set prices with confidence. Enter your cost and selling price to see your profit, margin and markup — or enter the margin or markup you want and get the selling price.
Margin and markup are often confused, and mixing them up is a common pricing mistake. A 25% markup is only a 20% margin.
How to use the Profit Margin Calculator
- Choose what you know: cost and selling price, cost and target margin, or cost and markup.
- Enter the values. Optionally add the quantity sold for totals.
- Press Calculate.
Formula
- Profit = Selling price − Cost
- Margin = Profit ÷ Selling price × 100
- Markup = Profit ÷ Cost × 100
- Price for a target margin = Cost ÷ (1 − Margin ÷ 100)
- Price for a markup = Cost × (1 + Markup ÷ 100)
Examples
- Cost 800, price 1,000: profit 200, margin 20%, markup 25%.
- Cost 800 and you want a 30% margin: price = 800 ÷ 0.70 = 1,142.86.
Frequently asked questions
What is the difference between margin and markup?
Margin compares profit with the selling price; markup compares profit with the cost. The same profit always gives a higher markup than margin.
Can a margin be 100%?
No. A 100% margin would mean the cost is zero. Markup, however, can be any size, such as 150%.