Profit Margin & Markup Calculator
Work out the selling price, profit, markup and margin from your cost. Start from a markup, a margin or a price and see the other numbers.
Your numbers
Your result
Selling price
0
- Profit
- 0
- Markup
- 0%
- Margin
- 0%
Margin and markup are not the same
Both describe the profit on a sale, but they divide by different numbers, so the same price gives two different percentages.
- Markup is profit as a percentage of cost: profit / cost x 100.
- Margin is profit as a percentage of the selling price: profit / price x 100.
For example, something that costs 80 and sells for 100 has a profit of 20. That is a 25% markup (20 / 80) and a 20% margin (20 / 100).
Profit margin and markup calculator FAQ
What is the difference between markup and margin?
Markup is profit divided by cost. Margin is profit divided by the selling price. A 25% markup is the same as a 20% margin, because the profit is a smaller share of the higher price than of the cost.
How do I calculate a selling price from a margin?
Divide the cost by 1 minus the margin as a decimal. For a cost of 80 and a 20% margin, 80 / 0.80 = 100. Adding 20% to the cost would give 96, which is only a 16.7% margin.
Why can I not enter a margin of 100%?
A 100% margin would mean the cost is nothing, or the price is infinite. Margin is always below 100%, while markup has no upper limit.
Should I price using margin or markup?
Either works if you stay consistent. Markup is quick for cost-plus quotes. Margin is easier to compare against overheads and targets, because it shows how much of each sale you keep.
Does this include tax and overheads?
It uses whatever cost you enter. Include every direct cost you want covered, and leave out sales tax, which you collect on behalf of the tax authority. The VAT / GST calculator can add tax to the final price.
Turn your price into an invoice
Add the price as a line item, send the invoice and track when it is paid. It is free, with no sign-up needed.