Profit Margin Calculator
Find your margin and markup from cost and price, or work backwards to the price you need for a target margin or markup.
- Margin, markup and target price
- Reference table included
- Works for any product
Per unit
Margin vs markup reference
| Margin | Same as markup | Price for a $10 cost |
|---|---|---|
| 10% | 11.1% | $11.11 |
| 20% | 25.0% | $12.50 |
| 25% | 33.3% | $13.33 |
| 30% | 42.9% | $14.29 |
| 40% | 66.7% | $16.67 |
| 50% | 100.0% | $20.00 |
| 60% | 150.0% | $25.00 |
| 70% | 233.3% | $33.33 |
| 75% | 300.0% | $40.00 |
| 80% | 400.0% | $50.00 |
The formulas
Margin = (price − cost) ÷ price × 100
Markup = (price − cost) ÷ cost × 100
Price for a margin = cost ÷ (1 − margin)
Price from a markup = cost × (1 + markup)
For profit after marketplace fees, shipping and ads, use a platform calculator such as the Amazon, Shopify or Etsy calculator.
Questions sellers ask
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 $40 and sells for $100 has a 60% margin but a 150% markup.
How do I calculate profit margin?
Subtract cost from the selling price to get profit, then divide profit by the selling price and multiply by 100. For example, ($100 − $40) ÷ $100 = 60%.
How do I price for a target margin?
Divide your cost by one minus the margin. For a 50% margin on a $40 cost: $40 ÷ (1 − 0.5) = $80. A common mistake is adding 50% to the cost, which gives a 33% margin instead.
Can margin be more than 100%?
No. Margin is a share of the price, and profit can never be larger than the price itself. Markup, on the other hand, can be any percentage.