How to use
- Enter the cost and the selling price to see profit, margin and markup.
- Enter a target margin or markup to get the matching selling price.
Options explained
- Gross margin
- Profit ÷ selling price. It can never reach 100%.
- Markup
- Profit ÷ cost. Doubling the cost is a 100% markup and a 50% margin.
- Price for a margin
- Price = cost ÷ (1 − margin). A 25% margin on a cost of 80 needs a price of about 106.67, not 100.
Examples
| Cost | Price | Profit | Margin | Markup |
|---|---|---|---|---|
| 60 | 100 | 40 | 40% | 66.67% |
| 35 | 49.90 | 14.90 | 29.86% | 42.57% |
| 80 | 106.67 | 26.67 | 25% | 33.33% |
Margin and markup are different
Margin is profit as a share of the selling price; markup is profit as a share of the cost. The same sale gives a bigger markup than margin:
| Margin | Same as a markup of |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
Examples
Retail item. Bought for $60, sold for $100: $40 profit, a 40% margin and a 66.7% markup.
Pricing for a target margin. To make a 30% margin on something that costs $40, sell it for $57.14 — not $52, which is a 30% markup and only a 23% margin.
Small-ticket item. Cost $25, price $30: $5 profit, a 16.7% margin and a 20% markup.
Frequently asked questions
What is the difference between margin and markup?
The base. Margin divides profit by the price, markup divides it by the cost, so markup is always the larger number.
Why doesn't a 25% markup give a 25% margin?
Adding 25% to a cost of 80 gives 100 and a profit of 20, which is only 20% of the price.
Should shipping and fees be in the cost?
Include every cost of the sale — shipping, platform fees, packaging — to see the margin you really make.
Privacy
This tool runs entirely in your browser. Your files and text are processed on your device and are never uploaded to our servers.