Profit Margin & Markup Calculator

Calculate profit, gross margin and markup from cost and price, or find the selling price needed to hit a target margin, and see why margin and markup differ.

Runs on your device

Result

Results appear here as you type.

What it does

A 50% markup is only a 33% margin. Mixing the two is one of the most common pricing mistakes. This calculator shows both from the same numbers.

How to use it

  1. Choose the calculation.
  2. Enter cost and price, or cost and target margin.
  3. Read profit, margin and markup.

Example

Cost 60, price 90: profit 30, margin 33.33%, markup 50%. Select Try an example above to see it.

When it helps

  • Pricing products and services.
  • Checking supplier quotes.
  • Explaining pricing to partners.

Questions

Margin vs markup?

Margin = profit ÷ price. Markup = profit ÷ cost. The same profit is a smaller percentage of the price than of the cost.

Should cost include shipping and fees?

Yes. Include every cost per unit, such as packaging, payment fees and delivery.

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