Margin & Markup Calculator — profit, margin and markup

This calculator turns a cost and a sale price into the three numbers every seller needs: the profit in money, the profit margin as a percentage of the price, and the markup as a percentage of the cost. Enter what an item costs you and what you sell it for, and all three update as you type.

Margin vs markup — the key difference

They are easy to confuse because they measure the same profit against different bases. Margin is profit divided by the sale price; markup is profit divided by the cost. A product bought for 60 and sold for 100 has a 40% margin (40 ÷ 100) but a 67% markup (40 ÷ 60). Margin can never exceed 100%, but markup can.

How the numbers are calculated

Profit is the sale price minus the cost. Margin is profit ÷ price × 100, and markup is profit ÷ cost × 100. If the price is below the cost, the profit and both percentages are negative — a useful warning that you are selling at a loss.

Working backwards to a price

If you know the margin you want, you can find the price: price = cost ÷ (1 − margin). To hit a 40% margin on a 60 cost, sell at 60 ÷ 0.6 = 100. To hit a target markup instead, price = cost × (1 + markup).

Why margin matters more than markup

Margin tells you what share of each sale you actually keep, which is what feeds overheads and profit. Two businesses with the same markup can have very different margins once discounts and fees are included, so margin is usually the figure to watch.

Example

You buy a product for 40 and sell it for 100. Your profit is 60, your margin is 60% and your markup is 150%. Drop the price to 60 and the profit falls to 20, the margin to 33% and the markup to 50%.

— Dies ist eine allgemeine Schätzung, keine Finanzberatung. Die Ergebnisse nutzen Standardformeln und berücksichtigen nicht jede Gebühr, Steuer oder künftige Zinsänderung — prüfen Sie die Zahlen mit Ihrer Bank oder einem Fachberater, bevor Sie entscheiden.

Erstellt, getestet und gepflegt vom Team von Everyday Calculators. Wie wir rechnen →