Margin Calculator
Profit margin from cost and price.
Inputs
$
$
Result
Profit$40.00
Margin40.00%
Markup66.67%
About the Margin Calculator
The Margin Calculator finds selling price, cost, or margin percentage from any two of those inputs — the essential retail and e-commerce pricing tool.
Calculation method
Margin % = (Price − Cost) / Price. Markup % = (Price − Cost) / Cost. Margin and markup are different metrics on the same numbers.
Margin = (Price − Cost) / Price
Markup = (Price − Cost) / CostHow to use this calculator
- Enter cost per unit.
- Enter target margin percentage.
- The calculator returns the required selling price and profit.
Example
A $40 cost item with a target 40% margin sells at $66.67 for $26.67 profit — that's a 66.7% markup on cost.
Frequently asked questions
Margin vs. markup — what's the difference?
Margin is profit as a % of price; markup is profit as a % of cost. The same $10 profit on a $25 sale is 40% margin or 66.7% markup.
What's a good margin?
Depends on industry — grocery 2–4%, apparel 40–60%, SaaS 70%+, luxury 60–80%. Compare to peers, not across categories.
Gross vs. net margin?
Gross margin includes only direct product cost. Net margin subtracts all operating expenses. Investors track both.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.