Enter cost and price to see margin and markup side by side, or work backwards from the margin you want.
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Type a cost and a selling price and this margin calculator shows margin and markup side by side, with profit per unit and totals for any quantity. It can also work backwards, finding the price a target margin needs or the highest cost a set price allows.
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Same profit, two different denominators, two different percentages.
The gap catches people out. A 50 percent markup is only a 33.3 percent margin, because the markup is measured against the smaller cost figure while the margin is measured against the bigger price.
Price a product with markup when you meant margin and the profit comes in thinner than planned. Showing both side by side makes that slip easy to spot before it costs money.
A quick way to feel the difference: doubling your money on cost is a 100 percent markup, yet that profit is only half the selling price, a 50 percent margin. The two scales never match, at any size.
Working backwards is where the other modes earn their keep. A target margin gives you the price to charge, and a fixed price with a target margin gives you the ceiling for your cost.
Quoting the wrong one in a negotiation is a quiet way to give away profit. Ask for one figure and price with the other, and the deal lands thinner than either side planned.
This is gross margin on the cost you enter, before overheads. Rent, wages, shipping and fees all sit outside the figure, so the real net margin on a product will be lower.
Tax a business collects for the government is not part of the price. Sales tax or VAT you add at the till belongs to the tax authority, and counting it as revenue would flatter the margin.
The cost figure matters more than the arithmetic. Leave out packaging or delivery in the cost and every percentage that follows is built on sand.
Prices change and costs change, and last season margin is no promise about this season. Rerun the figures whenever a supplier price moves.
The tool runs in your browser and your figures stay on your device. Nothing is uploaded or stored, there is no sign-up, and there are no usage caps.
Margin divides profit by the selling price, markup divides profit by the cost. Because the price is bigger than the cost, the margin percentage always comes out lower than the markup on the same deal.
Say a unit costs 100 and you add 50 percent, so it sells at 150. The profit of 50 is half the cost, which is where the 50 percent markup comes from, but it is only a third of the 150 price, which is where the 33.3 percent margin comes from.
Switch to the target margin mode, enter your cost and the margin you want, and the tool returns the selling price that delivers it.
No. It is gross margin on the cost entered. Overheads like rent and wages come off later, so your net margin will be smaller.
No. Tax you collect for the government is not your revenue. Work the margin out on the price before that tax is added.
Yes. Enter a quantity and the result shows total profit for that many units alongside the per unit figures.
Same rules as this one: free, in your browser, with nothing uploaded.
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