Right Calc Calculators

Finance

Profit margin and markup calculator

Profit margin, markup and the right selling price from your cost.

The fields start with an example. Replace it with your own numbers.

What do you want to find
Back to example

Profit margin

40%

Selling for $100.00 something that costs $60.00 gives a profit of $40.00: a margin of 40% and a markup of 66.67%.

How this is calculated →
  • Markup66.67%
  • Profit per unit$40.00

Margin vs. markup

Margin is profit divided by the selling price: (price − cost) ÷ price. Markup is profit divided by cost: (price − cost) ÷ cost. A cost of 60 and a price of 100 give a 40% margin and a 66.67% markup.

To reach a margin: price = cost ÷ (1 − margin). For a markup: price = cost × (1 + markup). Taxes and overhead are not included unless you add them to the cost.

Frequently asked questions

What is the difference between margin and markup?

Margin compares profit to the selling price; markup compares it to cost. A 50% margin equals a 100% markup.

Why can margin never reach 100%?

It would mean profit equal to the price, that is, zero cost. That is why the calculator accepts margins below 100%.

Should taxes be part of the cost?

For real profit, yes: add sales taxes, payment and marketplace fees, shipping and a share of overhead to the cost.

Related calculators

  1. Compound interest Investment with monthly contributions
  2. Loan payment Monthly payment and schedule
  3. Savings goal Monthly saving for a goal
  4. Simple interest Interest and total (I = P × r × t)
  5. Equivalent interest rate Monthly ↔ annual rate
  6. Financial calculator N, I/Y, PV, PMT and FV
  7. Marketplace profit Profit per sale and target price
  8. Inflation Dollar value over time, 1913 to today