Profit Margin Calculator
Enter your cost and the margin you want to get the sale price, or your cost and your price to get the margin and the markup.
Sale price
142.86
- Cost
- Margin
- Markup
- 42.86%
Margin and markup: two different percentages
On the same profit, margin and markup give different numbers. Mixing them up leaves a price lower than you thought.
The difference
Margin is profit divided by the sale price. Markup is profit divided by the cost. So on a profitable product, markup is always higher than margin.
Two examples
With a cost of 100 and a 30% margin, the price is 142.86 and the markup is 42.86%. With a cost of 40 and a price of 60, the margin is 33.33% and the markup is 50%.
Margin and markup equivalents
| Margin | Markup |
|---|---|
| 10% | 11.11% |
| 20% | 25% |
| 25% | 33.33% |
| 30% | 42.86% |
| 40% | 66.67% |
| 50% | 100% |
| 60% | 150% |
How profit margin is calculated
To get a price from a margin: cost ÷ (1 − margin). Margin is (price − cost) ÷ price, and markup is (price − cost) ÷ cost.
If you enter a tax, it's added on top of the sale price, and margin and markup are calculated without it.
Frequently asked questions
Still have a question?
Message us on WhatsAppMargin compares your profit with the sale price, and markup compares it with the cost. If you buy at 40 and sell at 60, you make 20: your margin is 33.33% and your markup is 50%.
Because margin is the part of the price left after paying the cost. A 100% margin would mean a cost of zero, and anything higher would mean a negative cost. So the calculator gives no price in those cases.
No. Tax is added on top of the sale price, on its own line, and margin is calculated without it. Enter the percentage that applies to your product and your country.
No single number works for everyone. It depends on your line of business, your volume and your fixed costs. Start from what you need to cover those costs and compare with what your competitors charge.
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