Profit Margin Calculator
Fill in any two values (cost, price, profit, margin or markup). The rest are calculated from the two you edited last and shown in amber. Works for any currency.
Formulas
Margin = Profit ÷ Price × 100
Markup = Profit ÷ Cost × 100
Price = Cost ÷ (1 − Margin)
Example
You buy a product for $60 and sell it for $100. Profit is $40. Margin is 40 ÷ 100 = 40%. Markup is 40 ÷ 60 = 66.67%.
To hit a 50% margin on the same $60 cost, the price must be 60 ÷ (1 − 0.5) = $120. A common mistake is adding 50% to the cost ($90), which only gives a 33.3% margin.
Margin vs markup chart
Use the multiplier to get the price: multiply your cost by it.
| Margin | Markup | Price = cost × |
|---|---|---|
| 5% | 5.263% | 1.053× |
| 10% | 11.11% | 1.111× |
| 15% | 17.65% | 1.176× |
| 20% | 25% | 1.25× |
| 25% | 33.33% | 1.333× |
| 30% | 42.86% | 1.429× |
| 33.33% | 50% | 1.5× |
| 35% | 53.85% | 1.538× |
| 40% | 66.67% | 1.667× |
| 45% | 81.82% | 1.818× |
| 50% | 100% | 2× |
| 60% | 150% | 2.5× |
| 70% | 233.3% | 3.333× |
| 75% | 300% | 4× |
| 80% | 400% | 5× |
| 90% | 900% | 10× |
Questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. An item that costs $60 and sells for $100 has a 40% margin but a 66.67% markup.
How do I calculate selling price from cost and margin?
Price = Cost ÷ (1 − margin). For a 30% margin on a $70 cost: 70 ÷ 0.7 = $100.
What is a good profit margin?
It depends on the industry. Grocery stores often run on gross margins around 25%, while software and many online services exceed 70%. Compare against businesses like yours rather than a single number.
This calculator works out gross margin (before overheads, tax and other expenses). Net margin subtracts those costs too.