Margin / Markup Calculator

Quick business math: margin, markup, and selling price.

If cost is and selling price is , what's the margin and markup?
Margin
%
Markup
%
If cost is and markup is %, what selling price?
Selling price
If cost is and margin is %, what selling price?
Selling price

What is Margin / Markup Calculator?

The Margin / Markup Calculator helps you price products by converting between cost, selling price, profit margin, and markup.

It’s useful for retail pricing, e‑commerce, invoicing, and ensuring your selling price matches your target margin.

What it can calculate

  • Margin & markup from cost and selling price - calculates both percentages.
  • Selling price from markup - finds selling price when you know cost and desired markup.
  • Selling price from margin - finds selling price when you know cost and desired margin.

Notes & tips

  • Margin is profit ÷ selling price. Markup is profit ÷ cost.
  • Margin % and markup % are not the same (a 50% markup is not a 50% margin).
  • Avoid using 100% margin-selling price would approach infinity because profit would equal selling price.

FAQ

What’s the difference between margin and markup?

Margin = profit ÷ selling price. Markup = profit ÷ cost.

Example: cost 60, sell 100 → profit 40 → margin 40%, markup 66.67%.

Why is a 50% markup not a 50% margin?

Markup is based on cost, margin is based on selling price. If cost is 100 with a 50% markup, selling price is 150. Profit is 50, so margin is 50 ÷ 150 = 33.33%.

How do I convert a target margin into an equivalent markup?

Use: markup% = margin% ÷ (100 − margin%) × 100.

Example: 30% margin → 30 ÷ 70 × 100 ≈ 42.86% markup.

Can margin be negative?

Yes. If selling price is below cost, profit is negative, so margin and markup become negative. This can happen with clearance sales or loss leaders.

Does “cost” include overhead and shipping?

That’s up to your pricing model. For a realistic margin, your cost should include whatever you consider “true cost” (COGS, packaging, platform fees, shipping subsidies, etc.).

How is selling price calculated from margin?

Selling price = cost ÷ (1 − margin/100).

If margin is 100%, the denominator becomes 0, which would imply an infinite price-so it’s not valid.

Should I include sales tax/VAT in the selling price?

Usually, margin/markup are calculated on the pre‑tax price (the tax is collected and passed through). If your displayed price is tax‑inclusive, you can remove tax first using the Sales Tax / VAT calculator.

Why do small price changes matter a lot at high margins?

When margin is high, the (1 − margin) term is small, so selling price becomes very sensitive. A 1–2% change in desired margin can move price noticeably.