The Margin & Markup Calculator
What you earn on a sale, what margin and markup that means, and what to charge to hit a target.
Cost and price
Everything is worked out in your browser. No figure is sent anywhere.
How to work out a profit margin
- Enter what the item costs you.
- Enter the selling price, or the margin or markup you are aiming for.
- Read the profit, the margin and the markup side by side.
Frequently asked questions
What is the difference between margin and markup?
Both measure the same profit against a different base. Margin divides it by the selling price, markup by the cost. Buy at 40 and sell at 100: the profit of 60 is a 60% margin and a 150% markup.
How do I price for a target margin?
Divide the cost by (1 - margin). For a 40% margin on a cost of 60: 60 / 0.6 = 100. The second mode does it for you.
Should I use margin or markup?
Retail and finance usually speak in margin, because it relates to revenue. Trade and wholesale often quote markup. Quote whichever your industry expects, but compare in margin.
Are taxes included?
No. Work with figures excluding tax, then add tax on top with the VAT calculator.
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