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How to Use the Margin Calculator
Calculate profit margin and markup from cost and selling price.
- Enter the cost price.
- Enter the selling price (or desired margin).
- See profit, margin %, and markup %.
Margin Formulas
Profit Margin
Margin% = (Price тИТ Cost) / Price ├Ч 100
Profit as a percentage of the selling price.
Example:
Input: Cost $60, Price $100
Calculation: (100тИТ60)/100
Result: 40% margin
Markup
Markup% = (Price тИТ Cost) / Cost ├Ч 100
Profit as a percentage of the cost.
Example:
Input: Cost $60, Price $100
Calculation: (100тИТ60)/60
Result: 66.7% markup
Real-World Use Cases
Retail Pricing
Set prices that hit a target margin.
Wholesale
Convert between markup and margin.
Tips
Tips
- Margin and markup are not the same тАФ don't confuse them.
- A 50% markup is only a 33% margin.
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