How to use
Enter the cost and the selling price — you’ll see the profit margin, the profit and the markup.
For the reverse question — what price gives, say, a 30% margin — choose “Price for a target margin” in the “Find” field.
Formulas
profit = price − costmargin = profit / price × 100markup = profit / cost × 100
Cost $800, price $1,000: profit $200, margin 20%, markup 25%.
Margin vs. markup
Margin is based on the selling price and markup on the cost, so for the same profit the markup is always higher. A 20% margin equals a 25% markup, 30% equals 42.86%, and 50% equals 100%.
Examples
- Cost $120, price $100 — a loss: profit −$20, margin −20%.
- To get a 30% margin on a cost of $800: price = 800 / (1 − 0.3) = $1,142.86.
FAQ
Is this gross margin? Yes: the difference between revenue and the cost of goods sold, as a percentage of revenue. Operating expenses and taxes aren’t included.
How do I set a price from a markup? Use the markup calculator.