Margin Calculator
Compute profit margin, markup and selling price from cost.
How to use this tool
- Enter cost, selling price, OR target margin depending on what you know.
- Solve the missing piece.
- See margin %, markup %, and per-unit profit.
How it works
Margin = (price - cost)/price. Markup = (price - cost)/cost. Price-from-margin = cost/(1 - margin). Any two inputs derive the third.
Tips
- Discounts eat margin faster than you think — a 20% off on a 40% margin drops it to 25%.
- Know your margin before negotiating in B2B sales.
Limitations
Variable cost basis only; fixed overhead affects real profitability.
Frequently asked questions
What's the difference between margin and markup?
Margin = profit / selling price; markup = profit / cost. A 50% markup equals a 33% margin — a common pricing mistake.
How do I price from cost?
Price = cost / (1 - target margin). E.g. cost $60 at 40% margin sells for $100.
Can I solve any two of pricing's three parts?
Yes — solve price from cost+margin, margin from cost+price, or cost from price+margin.