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Margin & Markup Calculator

Find your profit margin and markup, or the price you need to charge to hit a target margin.

Margin & markup calculator

$
$

Selling price

$100.00

Profit $40.00

Gross margin (profit ÷ price)
40.0%
Markup (profit ÷ cost)
66.7%

A 50% markup is only a 33.3% margin. Margin can never reach 100%; markup can be any size.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price; markup is profit as a share of cost. Cost $60, price $100: margin 40%, markup 66.7%.

How do I price for a 40% margin?

Divide cost by 0.6 (1 − 0.40). A $60 item needs a $100 price.

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