Margin and markup calculator
Get the profit, margin and markup from a cost and a price, or the price that gives the margin or markup you want.
How it works
margin = (price − cost) ÷ price × 100markup = (price − cost) ÷ cost × 100price = cost ÷ (1 − margin) = cost × (1 + markup)Worked example
Cost 60, wanted margin 40%:
- 60 ÷ (1 − 0.40) = 100
- profit 40 on a price of 100
- margin 40%, markup 66.7%
Frequently asked questions
What is the difference between margin and markup?
Both describe the same profit, measured against different bases. Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product bought for 60 and sold for 100 has a 40% margin and a 66.7% markup.
Can the margin be over 100%?
No. Margin is a share of the price, so it is always below 100%. Markup has no upper limit.
Is VAT included?
Use prices without VAT or sales tax; tax is not part of your profit.