MARGIN / MARKUP · COST · PRICE

Margin Calculator

Fill in any two values and see margin and markup side by side.

Local · prices never uploaded

Fill in any two values (at least one an amount) and the rest are worked out. Use one currency for all amounts.

Target gross marginMarkup

Markup → margin
MarkupGross marginPrice at this cost
Target margin → markup needed
Gross marginMarkupPrice at this cost

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How to use it

  1. Enter the cost, then any one of price, target margin, markup or gross profit.
  2. 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.
  3. 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

Common markups and the margin they give
MarkupGross 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.

margin calculator practical guide and common questions

What does a margin calculator do?

Margin is gross profit as a share of the selling price, while markup is the same profit as a share of cost; the different base is why a 50% markup equals only about a 33.3% margin.

Who is this for, and when is it useful?

Trade, ecommerce and purchasing staff setting prices, preparing quotes or checking a supplier markup before agreeing a price or discount.

How do I use this margin calculator?

Enter cost and price, or cost and a target margin or markup, read the derived values and the lookup table, then recheck with actual order costs.

How should I interpret the results?

Cost here is only the unit cost you enter; shipping, platform fees, advertising, tax and returns are not added automatically. Margin cannot reach 100% and markup is undefined at zero cost; include other costs or use the profit calculator for order-level net profit.

Where is the work performed, and which services receive data?

Cost, price and percentages are converted in your browser only. No store, ERP or accounting system is connected and the prices you enter are not saved.