Profit Margin & Markup Calculator
Margin and markup sound alike but are not the same — this shows both.
Margin = profit ÷ selling price. Markup = profit ÷ cost price. A 25% markup is only a 20% margin.
Frequently asked questions
What is the difference between margin and markup?
Both describe profit, but against different bases. Markup is profit as a percentage of what the item cost you. Margin is profit as a percentage of what you sell it for. If something costs 800 and sells for 1,000, the profit is 200, the markup is 25% and the margin is 20%.
How do I find the selling price for a target margin?
Divide the cost by (1 − margin). For a 25% margin on a cost of 800, the price is 800 ÷ 0.75 = 1,066.67. Choose "I want a target margin" and enter the cost and margin.
How do I find the selling price for a target markup?
Multiply the cost by (1 + markup). A 25% markup on 800 gives 800 × 1.25 = 1,000.
Does this include tax or other costs?
No. It works only with the cost and selling price you enter. Add GST, shipping, fees and overheads to your cost first if you want them reflected in the margin.