Profit Margin & Markup Calculator
Calculate your profit and compare margin with markup, or find the selling price you need to reach a target percentage.
Your pricing details
Choose a calculation method and enter your cost and pricing figures.
Selling price
Your entered selling price.
Profit breakdown
What the numbers mean
Profit margin is profit as a percentage of the selling price.
Markup is profit as a percentage of the cost.
A 20% margin is not the same as a 20% markup.
This is a simplified per-item calculation. It does not automatically account for tax, payment fees, overhead, returns, or other expenses unless you include them in your cost.
How are margin and markup calculated?
Profit = Selling price − Cost
Profit margin = Profit ÷ Selling price × 100
Markup = Profit ÷ Cost × 100
Price for target margin = Cost ÷ (1 − Margin)
Price for target markup = Cost × (1 + Markup)
Margin uses the selling price as its base, while markup uses the cost. For example, a cost of $80 and selling price of $100 produce $20 profit, a 20% margin, and a 25% markup.