Skip to content

Finance · free · no sign-up

Margin Calculator

Calculate profit margin and markup from your cost and selling price.

How it works Report a problem

Advanced Profit Margin

Calculate Gross Margin & Markup

$
$
Or compute price using desired Markup %:

Margin is the share of the selling price that is profit. It is the number retailers, wholesalers and service firms price by, and the one most often confused with mark-up. This calculator works both ways: margin from a cost and price, or the price required for the margin you want.

How to use this calculator

  • To find a margin: enter the cost and the selling price.
  • To set a price: enter the cost and the target margin percentage.
  • Press calculate to see the profit, the margin and the price.

Margin is not mark-up

Mark-up is added on top of cost; margin is measured out of the final price. A 50% mark-up is only a 33% margin, so pricing by the wrong one quietly underprices everything. If a target margin matters, always convert through the price, as this calculator does.

Frequently asked questions

What is the margin formula?
Margin = (price − cost) divided by price, times 100. And price from a target margin = cost divided by (1 − margin/100).
What margin should I aim for?
It depends on your costs beyond the product itself: the margin must cover rent, staff, marketing and tax and still leave profit. Many retailers target 40 to 55% gross margins for that reason.
How do discounts affect margin?
Directly and hard. A 20% discount on a product with a 40% margin cuts the margin to 25%, so volume must rise sharply to make up the difference.