Margin Calculator

Calculate profit margin, markup percentage, and revenue from cost and selling price.

Enter Cost & Selling Price

Cost ($)

Selling Price / Revenue ($)

Results

Profit Margin

40.0%

Markup

66.7%

Profit

$40.00

Cost ($) ($60.00)Profit ($40.00)

Summary

Revenue$100.00

Cost ($)-$60.00

Profit$40.00

Profit Margin: ($100 − $60) ÷ $100 × 100

= $40.00 ÷ $100 × 100

= 40.0%

Markup: ($100 − $60) ÷ $60 × 100

= $40.00 ÷ $60 × 100

= 66.7%

Margin vs. Markup Explained

Profit margin and markup are both measures of profitability, but they use different bases. Margin is calculated as a percentage of the selling price, while markup is calculated as a percentage of the cost. This distinction matters because a 50% markup results in only a 33.3% margin.

Understanding the difference is critical for pricing strategy. If you set prices based on a target margin (common in retail and e-commerce), you need to convert that to the equivalent markup on your costs. Our calculator shows both values simultaneously so you can price with confidence. For quick sale price calculations, try our discount calculator, or use the percentage calculator for general percentage math.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is the percentage of the selling price that is profit: (Price - Cost) / Price × 100. Markup is the percentage added to cost: (Price - Cost) / Cost × 100.

What is a good profit margin?

It depends on the industry. Grocery stores typically operate on 1-3% net margins, while software companies may see 60-80% gross margins. In general, 10% is average, 20% is good, and 30%+ is excellent.

How do I calculate selling price from cost and desired margin?

Use the formula: Selling Price = Cost / (1 - Margin/100). For example, if your cost is $60 and you want a 40% margin: Price = $60 / 0.60 = $100.

Learn what profit margin is, how to calculate gross margin vs markup, and what counts as a good margin—with real examples and a free margin calculator.