Toolstia / Profit margin calculator
Profit margin and markup calculator
Enter your cost and selling price to see the profit, the profit margin and the markup. Or enter a cost and the margin or markup you want, and find the price to charge. You can also work back from a price to the cost.
Enter the two numbers to see the result.
How it works
- Choose what you already know.
- Enter the two numbers.
- Read the cost, price, profit, margin and markup.
Margin versus markup
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. If you buy for 60 and sell for 100, the profit is 40, the margin is 40% and the markup is about 66.7%.
Why they get mixed up
A 50% markup is not a 50% margin. Adding 50% to a cost of 100 gives a price of 150, and the margin on that is only 33.3%. Using the wrong one can leave you with less profit than you planned.
Margin limits
A margin must be below 100%, because the cost cannot be below zero. A markup can be any size. A negative result means you are selling at a loss.
What is not included
This works with the numbers you enter. Add tax, delivery and fees to the cost if you want the real profit. For VAT or GST use the VAT calculator.
Questions
Which currency is used?
Any. The tool just does the maths with your numbers.
How do I get a 30% margin?
Choose "Cost and the margin I want" and enter 30. The price is the cost divided by 0.7.
Can I get a negative margin?
Yes, if the price is below the cost. It shows the loss.
Is anything uploaded?
No. Your numbers stays in your browser and is never sent anywhere.