Profit Margin & Markup Calculator

Calculate your ideal selling price, gross profit, and margin percentages in real time. Perfect for e-commerce sellers, retailers, and freelancers.

$
%
Selling Price
$71.43
Gross Profit
$21.43
Profit Margin
30.00%
Markup Percentage
42.86%
Cost / Price Ratio
70.00%

Profit Margin vs. Markup: What's the Difference?

Profit Margin

Profit margin measures how much profit you keep from your total selling price.

Margin = (Profit / Selling Price) × 100

Markup

Markup measures how much you increase your cost price to get your selling price.

Markup = (Profit / Cost) × 100

How to use the Profit Margin & Markup Calculator

  1. Pick the mode. Margin % and Markup % both start from your cost and a target percentage and give you the selling price. Find Margin / Markup starts from a cost and a selling price you already have and tells you what margin and markup that price represents.
  2. Choose the currency symbol (it only changes the label, not the maths) and enter the item cost: what one unit costs you to buy or make, including freight or packaging if you pay them per unit.
  3. Enter the target percentage, or in reverse mode the selling price. The five results update as you type: selling price, gross profit, profit margin, markup and cost ratio. Copy puts them on the clipboard as one line.

The formulas behind the five results

Margin and markup describe the same profit from two different bases, and that is the whole reason this calculator exists. Margin divides the profit by the selling price; markup divides the same profit by the cost. With cost C and price P: gross profit is P − C; margin is (P − C) ÷ P; markup is (P − C) ÷ C; cost ratio is C ÷ P, which is simply one minus the margin. To reach a target margin m the price is C ÷ (1 − m); to reach a target markup k the price is C × (1 + k). The calculator applies exactly these, with no rounding until the display.

Worked example

An item costs $50. In Margin mode with a 30% target the price is 50 ÷ 0.70 = $71.43, gross profit $21.43, markup 42.9% and cost ratio 70%. Switch to Markup mode and type the same 30%: the price becomes 50 × 1.30 = $65.00, and the margin on that price is only 23.1%. Same cost, same "30%", a $6.43 difference per unit; on 500 units a month that is $3,215 of gross profit that either exists or does not, depending on which word you meant. Reverse mode settles arguments the other way round: cost $50, price $80 gives margin 37.5% and markup 60%.

Common mistakes

When this calculator is the wrong tool

It prices one unit at a time from its own cost. It does not know your fixed costs, so a healthy margin here can still lose money overall; the Break-Even Point Calculator answers how many of these units you must sell to cover rent and salaries. For a sale price after a percentage off, use the Discount & Markdown Calculator, which works from the price down rather than from the cost up. And if you want a reference table rather than a calculator, the pricing guides list every markup from 5% to 200% with its equivalent margin.

Good to know

Nothing you type is uploaded; the page has no server side. The currency list only changes the symbol shown, so any currency works. Results are shown to two decimals but computed in full precision, which is why a copied line can differ by a cent from a hand calculation on rounded figures.

Frequently Asked Questions

How do I calculate profit margin and markup percentage?

Enter your cost and selling price into the Profit Margin & Markup Calculator — it instantly shows gross profit, margin %, and markup % side by side.

What's the difference between margin and markup?

Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. The calculator shows both from the same two numbers so you never have to remember the formulas.

How do I find the selling price I need to hit a target margin?

Switch to the "find selling price" mode, enter your cost and target margin percentage, and the calculator works out the price you need to charge.

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