Finance

Profit Margin Calculator (Margin, Markup, Price)

Calculate profit margin, markup, and selling price. Enter any two of cost, revenue, or margin percent and it works out the rest with benchmark context.

How to use
  1. Enter any two of cost, revenue, or margin percent.
  2. Compare against the industry-average benchmark shown.
Target margin
Profit margin
60.0%

$60.00 profit on a $100.00 sale

Markup
150.0%
Profit
$60.00
Cost ratio
40%
Estimates for general information, not financial advice. Confirm figures before making money decisions.
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How it's calculated

margin % = (price − cost) ÷ price × 100, markup % = (price − cost) ÷ cost × 100

price = selling price, cost = unit cost; profit = price − cost. Margin is profit over price, markup is profit over cost.

Common questions

What is the difference between margin and markup?

Margin is profit as a percent of the selling price. Markup is profit as a percent of the cost. A 50 percent markup is only a 33 percent margin.

How do I get the selling price from cost and margin?

Divide cost by (1 minus the margin as a decimal). A 40 dollar cost at a 20 percent margin sells for 50 dollars.

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