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Profit Margin Calculator

Buy at 60 and sell at 100 and your margin is 40% — but your markup is 66.7%. Enter the cost and price to see profit, margin and markup together, or set a target margin or markup to get the price to charge.

Runs in your browser — nothing you enter is uploaded

Margin = profit ÷ price; markup = profit ÷ cost. With a cost of 60 and a price of 100, the margin is 40% and the markup about 66.7%.

Gross margin

40%

Markup

66.67%

Profit

40.00

Price for this margin (40%)

100.00

Price for this markup (50%)

90.00

How to use

  1. Enter the cost and the selling price to see profit, margin and markup.
  2. 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.

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