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MarginToolkit

Profit Margin Calculator

Find your margin and markup from cost and price, or work backwards to the price you need for a target margin or markup.

  • Margin, markup and target price
  • Reference table included
  • Works for any product

What do you want to find?

Calculation

Numbers

What one unit costs you
Profit margin
60.0%
Margin
60.0%
Markup
150.0%

Per unit

Cost$40.00
Price$100.00
Profit$60.00

Margin vs markup reference

MarginSame as markupPrice for a $10 cost
10%11.1%$11.11
20%25.0%$12.50
25%33.3%$13.33
30%42.9%$14.29
40%66.7%$16.67
50%100.0%$20.00
60%150.0%$25.00
70%233.3%$33.33
75%300.0%$40.00
80%400.0%$50.00
Profit margin
60.0% $60.00 profit
See details

The formulas

Margin = (price − cost) ÷ price × 100

Markup = (price − cost) ÷ cost × 100

Price for a margin = cost ÷ (1 − margin)

Price from a markup = cost × (1 + markup)

For profit after marketplace fees, shipping and ads, use a platform calculator such as the Amazon, Shopify or Etsy calculator.

Questions sellers ask

What is the difference between margin and markup?

Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. An item that costs $40 and sells for $100 has a 60% margin but a 150% markup.

How do I calculate profit margin?

Subtract cost from the selling price to get profit, then divide profit by the selling price and multiply by 100. For example, ($100 − $40) ÷ $100 = 60%.

How do I price for a target margin?

Divide your cost by one minus the margin. For a 50% margin on a $40 cost: $40 ÷ (1 − 0.5) = $80. A common mistake is adding 50% to the cost, which gives a 33% margin instead.

Can margin be more than 100%?

No. Margin is a share of the price, and profit can never be larger than the price itself. Markup, on the other hand, can be any percentage.

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