Profit margin calculator
A 50 percent markup is not a 50 percent margin. Markup divides the profit by the cost. Margin divides the profit by the selling price.
Pick the number you already know: a selling price, a target margin, or a target markup. The page fills in the other two and the profit.
Calculator
Required fields are marked with *.
Use a comma or a dot for the decimal, as in 12.5 or 12,5. Type thousands as 1000 or 1 000. A single comma or dot is the decimal mark, so 1,000 means 1.
Results
The result will appear here.
How to use this calculator
- Enter the cost.
- Choose price, margin, or markup, and enter that figure.
- Read the selling price and both percents. A 100 percent margin is rejected because the price would be undefined.
Formula
margin = (price − cost) / price × 100
markup = (price − cost) / cost × 100
price = cost / (1 − margin / 100)
price = cost × (1 + markup / 100)
Worked example
Cost 60, price 100
Profit is 40. Margin is 40 / 100 = 40 percent.
Markup is 40 / 60 = 66.67 percent. A 50 percent markup on 60 instead produces a price of 90.
Profit 40. Margin 40 percent. Markup 66.67 percent.
Questions
Why can’t the margin be 100 percent?
A 100 percent margin would mean the cost is zero relative to the price in a way that makes the price formula divide by zero. Use a markup if you are scaling the cost.
Does this include tax?
No. Add tax afterward with the VAT calculator if the selling price needs it.
Is markup always higher than margin?
When both are positive and the price is above the cost, yes, because the profit is divided by a smaller number, the cost.
Sources
Last reviewed November 12, 2026