Margin Calculator

Enter cost and selling price to get the profit margin, markup and profit โ€“ or enter a target margin or markup to get the price to charge. Add sales tax to see the final price.

What do you want to calculate?
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Enter prices before tax. Sales tax varies by state and city โ€“ 7% is only an example, enter your combined rate.

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โ€”Selling price
โ€”Profit per unit
โ€”Margin
โ€”Markup

Selling price by margin (same cost)

MarginMarkupPriceProfit

Margin = profit รท price, markup = profit รท cost. A 50% margin equals a 100% markup (doubling the cost).

About the Margin Calculator

This margin calculator helps you price products and check profitability for an online store, Amazon or Etsy shop, wholesale business or restaurant. A โ€œ30% marginโ€ and a โ€œ30% markupโ€ are very different numbers: margin is profit as a share of the selling price, markup is profit as a share of cost. Mixing them up is one of the most common pricing mistakes, so the calculator always shows both, plus a table of prices for common margins.

How to use

  1. Choose a mode: Margin uses cost and selling price; Price from margin and Price from markup calculate the price from cost and a target percentage.
  2. Enter the cost (what you pay per unit, including landed costs) and the price or target percentage, all before sales tax.
  3. Tick Add sales tax and enter your combined state and local rate to see the price the customer pays.
  4. Use the table to compare prices and profit at margins from 10% to 60%.

Margin and markup formulas

ValueFormulaExample (cost $35, price $50)
Profitprice โˆ’ cost$15
Gross marginprofit รท price ร— 10030%
Markupprofit รท cost ร— 10042.86%
Price from margin mcost รท (1 โˆ’ m)40% โ†’ $58.33
Price from markup kcost ร— (1 + k)50% โ†’ $52.50

Common mistake: adding 40% to a $35 cost ($49) gives a margin of only 28.6%, not 40%.

Margin to markup conversion

MarginMarkup
10%11.1%
20%25%
25%33.3%
30%42.9%
40%66.7%
50%100%
60%150%

Markup = margin รท (1 โˆ’ margin); margin = markup รท (1 + markup).

Sales tax and other costs

US sales tax is collected from the customer and passed on to the state, so it is not part of your revenue or margin โ€“ always calculate margin on the pre-tax price. Rates depend on the state, county and city. Also account for marketplace and payment fees (often 3โ€“15% of revenue), shipping, returns and advertising, either by adding them to cost or by targeting a higher margin.

FAQ

What is the difference between margin and markup?

Margin is profit divided by the selling price; markup is profit divided by cost. The same sale always has a higher markup than margin โ€“ for example, cost $35 and price $50 is a 42.9% markup but a 30% margin.

Can a margin be more than 100%?

No. Because margin is a share of the price, it can never reach 100% unless the cost is zero. Markup has no upper limit: selling at three times cost is a 200% markup and a 66.7% margin.

What is a good profit margin?

It depends on the industry. Grocery stores often run gross margins of 25โ€“30%, apparel and cosmetics 50% or more, and software even higher. Compare with businesses like yours and remember that operating costs still come out of the gross margin.

Is this gross margin or net margin?

Gross margin: it only subtracts the cost of the product. Net margin also subtracts overhead such as rent, salaries and taxes.