How to use it
- Enter the cost, then any one of price, target margin, markup or gross profit.
- The other values appear at once. Fields marked Entered are your two inputs; Calculated fields are results. Whatever you change, the two most recent entries drive the calculation.
- Use the lookup tables below to compare markups, margins and prices, then copy the result.
Formulas
- Gross profit = price − cost
- Margin = gross profit ÷ price × 100%
- Markup = gross profit ÷ cost × 100%
- Price from a target margin: price = cost ÷ (1 − margin)
- Conversion: margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin)
Markup and margin compared
| Markup | Gross margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 50% | 33.33% |
| 75% | 42.86% |
| 100% | 50% |
| 150% | 60% |
| 200% | 66.67% |
Frequently asked questions
What is the difference between margin and markup?
Both use the same gross profit (price − cost): margin divides it by the price, markup by the cost. With a cost of 60 and a price of 100, profit is 40, margin is 40% and markup is 66.67%.
Why is a 50% markup not a 50% margin?
A cost of 100 with a 50% markup sells at 150; the profit of 50 is 33.3% of the price. A 50% margin needs a 100% markup, a price of twice the cost.
How do I price from cost and a target margin?
Price = cost ÷ (1 − target margin). A cost of 60 and a 40% target gives 60 ÷ 0.6 = 100. Enter the cost and margin in the tool.
Can a margin exceed 100%?
No. Margin approaches 100% only as cost approaches zero, while markup can exceed 100%. Both are negative when the price is below cost.
Should cost include shipping and platform fees?
It depends on which margin you need. Purchase price alone gives product margin; adding freight, packing and marketplace commission gives a contribution margin closer to reality. To model advertising, returns and tax per order, use the profit calculator.
Are my prices saved or uploaded?
No. Calculations run in your browser only; the page does not save or upload the costs and prices you enter.