Margin from cost and price
Cost 60, price 100: profit 40, margin 40 %, markup 66.67 %.
Profit margin calculator
Margin and markup are often confused. Enter your cost and selling price to see your profit, your margin (share of the price) and your markup (share of the cost) — or enter a target margin and get the price to charge.
Result
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Results are provided for information. Check tax rates and legal requirements that apply to you.
How to use it
- Choose whether you know your price or want to find it for a target margin.
- Enter your cost (purchase or production cost).
- Enter the selling price, or the margin you want to reach.
- Read profit, margin and markup; adjust until the price works for you.
Examples
Price for a 30 % margin
Cost 70 and a target margin of 30 %: price = 70 ÷ (1 − 0.30) = 100.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by the cost. With a cost of 60 and a price of 100, the margin is 40 % but the markup is 66.67 %.
How do I find the price for a target margin?
Divide the cost by (1 − margin). For a 25 % margin on a cost of 75: 75 ÷ 0.75 = 100. Adding 25 % to the cost would only give a 20 % margin.
Can the margin reach 100 %?
No: a 100 % margin would mean a zero cost or an infinite price. The calculator accepts margins up to 99.99 %.
Does the calculator include tax?
Work with amounts excluding tax so that VAT does not distort your margin. Use the VAT calculator to convert prices if needed.
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