Margin Calculator

Profit-
Gross margin-
Markup-

Find the price from a target

Price for target margin-
Price for target markup-

How it works

Profit = selling price − cost. Gross margin is profit divided by the selling price; markup is profit divided by the cost. The same sale therefore has a larger markup than margin: a $60 item sold for $100 makes $40 profit, which is a 40% margin and a 66.7% markup.

To reach a target margin, price = cost ÷ (1 − margin). To reach a target markup, price = cost × (1 + markup).

FAQ

What is the difference between margin and markup?

Both measure profit, but from different bases. Margin is a share of the selling price, so it can never reach 100%. Markup is a share of the cost and can be any size. A 50% markup equals a 33.3% margin.

How do I get 30% margin from a 30% markup?

You cannot: a 30% markup is only a 23.1% margin. For a 30% margin you need a 42.9% markup.

Is this net profit?

No. It is gross profit: selling price minus the direct cost of the item. Overheads, shipping, fees and taxes are not included unless you add them to the cost.

See also: Percentage Calculator · Discount Calculator · Sales Tax Calculator