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Profit Margin and Markup Calculator: Price Your Products

This free profit margin calculator finds your margin and markup from cost and selling price. It can also work out the price you need to reach a target margin or markup.

By Debmedia Technologies LLP · Kolkata, India · Updated

What Is It and When Do You Need It?

Margin and markup both describe profit, but they use different bases. Mixing them up leads to underpriced products. Margin compares profit with the selling price, while markup compares it with the cost.

Give your cost and either the price or the target, and the tool shows margin, markup, profit per unit and the price.

How to Use This Tool

  1. Choose what you know.
  2. Enter the cost per unit.
  3. Enter the price, or the margin or markup you want.
  4. Press Calculate.

How the Calculation Works

Profit = price − cost. Margin = profit ÷ price. Markup = profit ÷ cost. For a target margin m, price = cost ÷ (1 − m). For a target markup k, price = cost × (1 + k).

Worked Example

Cost 60 and price 100: profit 40, margin 40%, markup 66.7%. To earn a 30% margin on a cost of 60, charge 85.71. For a 30% markup, charge 78.

Common Uses

  • Pricing products and services.
  • Checking shop and online margins.
  • Setting sale prices after a discount.
  • Business plans.

Tips and Common Mistakes

  • A markup above 100% is possible, but a margin never reaches 100%.
  • Remember overheads, tax and fees.
  • Check margins after discounts.

Next, you may need the discount calculator, break-even calculator, ROI calculator, GST calculator.

Everything runs in your browser. Nothing you type is uploaded, stored or sent to any outside service.

Frequently Asked Questions

Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 50% markup equals a 33.3% margin.
(Price − cost) ÷ price × 100. A product costing 60 and sold for 100 has a margin of 40%.
Divide the cost by (1 − margin). For a 40% margin on a cost of 60, the price is 60 ÷ 0.6 = 100.
No. It is gross margin, before overheads, tax and other costs.

Disclaimer: results are calculated in your browser from the numbers you enter. Check important results before you rely on them for money, health, safety or legal decisions.