Margin Calculator: Profit, Markup, Cost and Selling Price

Margin Calculator

Calculate profit margin and markup, or find the selling price or cost required for a target percentage.






Use amounts before or after tax consistently. The currency symbol changes display only.


Profit margin and markup formulas

Margin and markup use the same profit but different denominators:

  • Profit = selling price − cost
  • Margin = profit ÷ selling price × 100%
  • Markup = profit ÷ cost × 100%
  • Selling price from margin = cost ÷ (1 − margin)
  • Selling price from markup = cost × (1 + markup)

Enter margin and markup percentages as percentages, not decimals. For example, enter 40 for 40%.

Checked examples

CostPriceProfitMarginMarkup
$60$100$4040%66.67%
$80$100$2020%25%
$100$90−$10−11.11%−10%

How to calculate a selling price

Choose the target-margin mode when the desired percentage is profit divided by selling price. A $60 cost at a 40% target margin requires a $100 selling price because $40 of the $100 sale is profit.

Choose the markup mode when the percentage is applied directly to cost. A 50% markup on a $60 cost produces a $90 price. The resulting profit margin is 33.33%, not 50%, because margin divides the $30 profit by the $90 selling price.

How quantity affects totals

Quantity does not change the per-unit margin or markup. It multiplies per-unit cost, revenue and profit. The estimate assumes every unit has the same cost and selling price and that all units are sold.

Limits and practical considerations

  • Include labor, payment fees, shipping, overhead and expected losses in cost when they apply.
  • Use either tax-inclusive or tax-exclusive values consistently.
  • A discount changes selling price and therefore changes both margin and markup.
  • The calculator does not predict demand, inventory turnover or taxes.

Frequently asked questions

Is a 50% markup the same as a 50% margin?

No. A 50% markup means price is 1.5 times cost and corresponds to a 33.33% margin. A 50% margin requires price to be twice cost.

Can profit margin be negative?

Yes. If selling price is below cost, profit, margin and markup are negative.

Why can target margin not reach 100%?

With a positive cost, a 100% margin would require an infinite selling price. The selling-price formula divides by one minus the target margin.

Should shipping be included in cost?

Include shipping, transaction fees and other variable expenses when you want margin after those expenses rather than gross product margin alone.

Related calculators

Use the ROI Calculator to compare a complete investment with its proceeds, or the Percentage Calculator for general percentage change and difference.

Related: For a property transaction’s commission and agent split, use the Real Estate Commission Calculator.