Margin Calculator
Margin Inputs
Results
| Cost | — |
|---|---|
| Selling Price | — |
| Profit | — |
| Profit Margin | — |
| Markup | — |
How to Use This Margin Calculator
Someone says "mark it up 50%" and another says "keep margin at 30%"—those are not the same number, and mixing them up is how products get priced below cost. I use From cost and price when reviewing a shelf tag, and From cost and target margin when setting one.
- Choose a mode. From cost and selling price, or from cost and target margin.
- Enter cost. Your cost of goods or wholesale price.
- Enter selling price or target margin. Actual price in the first mode; desired margin percent in the second.
- Press Calculate. Review cost, selling price, profit, profit margin, and markup.
Calculate sale discounts with the Discount Calculator, or add tax to a final price with the Sales Tax Calculator.
Margin Formulas and Practical Applications
Margin and markup measure the same profit differently. Margin divides by selling price (what customers pay); markup divides by cost (what you paid). Retail buyers think in margin; vendors often quote markup.
From cost and price
Profit = Price − Cost
Margin = Profit ÷ Price × 100
Markup = Profit ÷ Cost × 100
Cost $40, price $100: profit $60, margin 60%, markup 150%.
From cost and target margin
Price = Cost ÷ (1 − Margin ÷ 100)
Cost $40 with a 30% target margin needs a price of $57.14—not $52 (which would be 30% markup).
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit divided by selling price. Markup is profit divided by cost. A 25 percent margin is not the same as a 25 percent markup.
How do I find the price for a target margin?
Select From cost and target margin mode. Selling price equals cost divided by one minus margin rate as a decimal.
What does gross margin exclude?
Gross margin covers only cost of goods sold vs selling price. Operating expenses, taxes, and overhead are not included.
How is profit calculated?
Profit equals selling price minus cost.
Can margin exceed 100 percent?
No. Margin is capped below 100 percent because selling price must exceed cost for a positive margin.