Margin/Markup Calculator
Calculate margin (profit as a % of selling price) and markup (profit as a % of cost) from the same cost and price — the two are commonly confused, so both are shown side by side — instantly, in your browser.
Enter your cost and selling price to see profit, margin and markup together. It runs in your browser.
How to use it
- Enter your cost.
- Enter the price you sell at.
- Read the margin, markup and profit.
Formulas and example
- Profit = price − cost
- Margin = profit ÷ price × 100
- Markup = profit ÷ cost × 100
Cost $60 and price $100: profit $40, margin 40%, markup 66.7%. To reach a 40% margin on a $60 cost, the price is 60 ÷ 0.60 = $100, not 60 plus 40%, which would be $84 and only a 28.6% margin.
Good to know
Cost and price must both be above zero. These are gross figures before payment fees, shipping, returns, advertising, tax and overheads. People also mean different things by “cost”: using the supplier’s invoice price or the landed cost with freight can change the margin noticeably (on a $100 sale, $60 gives 40% but $66 gives 34%). This is arithmetic, not accounting or tax advice.
See margin vs markup and how to calculate both.
FAQs
Is this net profit margin?
No. It is gross margin on one product. Net margin also subtracts overheads and is always lower.
Can margin be negative?
Yes, if you sell below cost.