Profit margin calculator

Margin and markup get mixed up all the time, and the difference can cost you money. Both measure the same profit, but against a different base.

Enter the cost and the price and we show both. Or pick a margin and we tell you what to charge.

How it's calculated

A product that costs $400 and sells for $750 makes $350 profit: a 46.67% margin and a 87.50% markup.

To make a 50% margin on that cost, you need to sell at $800. Adding 50% to the cost only gives a 33.33% margin.

What is the difference between margin and markup?

Margin is profit over the selling price. Markup is profit over the cost. For the same profit, markup is always the bigger number.

How do I set a price for a target margin?

Divide the cost by (1 − margin). For a 30% margin, divide the cost by 0.70. Don't add 30% to the cost: you would earn less than you think.

Should cost include taxes?

Use cost and price without taxes passed on to the customer, such as sales tax or VAT. Otherwise the margin looks bigger than it is.

Up-to-date official data

We check the official sources automatically, every day.