Profit Margin Calculator
Fill in any two of cost, selling price or margin % — the calculator works out the rest, including markup.
Margin % is relative to the selling price; markup % is relative to the cost. Edit any field and the others update.
Frequently asked questions
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. A 50% margin is not the same as a 50% markup — a 50% margin means you keep half of what the customer pays, while a 50% markup means you add half the cost on top (which is only a 33% margin).
How do I calculate the selling price from a target margin?
Use the formula price = cost ÷ (1 − margin%). For a 40% margin on a $60 cost: $60 ÷ 0.60 = $100. The tool does this automatically when you fill in cost and margin.
Which should I track — margin or markup?
Margin is usually the better measure of profitability because it relates to your actual selling price and scales with revenue. Markup is more intuitive for quick cost-plus pricing. Many businesses quote markup but report margin.