Margin Maker Margin and markup calculator
Enter any two of cost, price, markup and margin, and the other two are worked out. Free, no sign-up, and nothing you type leaves your browser.
Markup and margin are not the same number
Both describe the profit on a sale, but against different bases. Markup compares profit with what the item cost you. Margin compares the same profit with what you sold it for.
markup = (price − cost) ÷ cost margin = (price − cost) ÷ price
Buy something for 40 and sell it for 65, and the profit is 25. That is a markup of 62.5% (25 ÷ 40) and a margin of 38.46% (25 ÷ 65). Because price is the larger base whenever you make a profit, margin is always the smaller figure.
Setting a price from a target margin
Adding your target margin to the cost as if it were a markup gives a price that is too low. To keep a 40% margin on an item that costs 40, the price has to be 66.67, not 56.
price = cost ÷ (1 − margin) price = cost × (1 + markup)
Enter the cost and the margin above and the calculator gives the price and the matching markup.
Converting between the two
Enter only a markup or only a margin and the other is filled in. A 50% markup is a 33.33% margin, and a 50% margin is a 100% markup. Margin can never reach 100%, because that would mean the item cost nothing.
margin = markup ÷ (1 + markup) markup = margin ÷ (1 − margin)
What the figures leave out
Amounts carry no currency symbol, so the calculator works in any currency. It does not add tax, and cost means whatever you choose to include in it: add shipping, fees and packaging to the cost if you want the margin to account for them.