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How to Use the Margin Calculator

Calculate profit margin and markup from cost and selling price.

  1. Enter the cost price.
  2. Enter the selling price (or desired margin).
  3. See profit, margin %, and markup %.

Margin Formulas

Profit Margin

Margin% = (Price − Cost) / Price × 100

Profit as a percentage of the selling price.

Example:

Input: Cost $60, Price $100

Calculation: (100−60)/100

Result: 40% margin

Markup

Markup% = (Price − Cost) / Cost × 100

Profit as a percentage of the cost.

Example:

Input: Cost $60, Price $100

Calculation: (100−60)/60

Result: 66.7% markup

Real-World Use Cases

Retail Pricing

Set prices that hit a target margin.

Wholesale

Convert between markup and margin.

Tips

Tips

  • Margin and markup are not the same — don't confuse them.
  • A 50% markup is only a 33% margin.
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