Free Profit Margin and Markup Calculator
Work out profit, gross margin and markup, and the price you need to hit a target margin.
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How to use the Profit Margin Calculator
Enter the cost and selling price of one item.
Read the profit, gross margin and markup.
Set a target margin to see the price you need to charge.
Questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. An item that costs 60 and sells for 100 has a 40% margin and a 66.67% markup.
How do I price for a target margin?
Divide the cost by one minus the target margin. For a 40% margin on a cost of 60, the price is 60 divided by 0.6, which is 100.
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