Margin Calculator
Calculate profit margin, markup percentage, and the selling price you need — from cost and price or from a target margin.
This free margin calculator shows the difference between margin and markup, calculates both from your cost and selling price, and can reverse-calculate the price you need to hit a target margin. Perfect for pricing products, evaluating deals, and comparing profitability.
Margin vs Markup: What Is the Difference?
Margin is the percentage of the selling price that is profit. Markup is the percentage added on top of the cost. On a $25 product sold for $50, the margin is 50% (half the price is profit) while the markup is 100% (you doubled the cost). Both describe the same profit differently, and confusing them is one of the most common pricing mistakes in business.
Frequently Asked Questions
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. A $25 cost sold for $50 has a 50 percent margin and 100 percent markup.
How do I calculate profit margin from cost and price?
Subtract the cost from the price, then divide by the selling price and multiply by 100. A $12 cost sold at $35 gives a 65.7 percent margin.
What is a good profit margin for e-commerce?
Most e-commerce businesses target 30 to 50 percent margin before advertising. Below 25 percent, ad costs and returns can eat the profit.
How do I find the price I need for a target margin?
Switch to the second mode, enter your cost and desired margin, and the calculator shows the selling price. For a $25 cost at 40 percent margin, sell at $41.67.
What is a good profit margin?
It varies by industry. Retail typically runs 25 to 50 percent, software 70 to 90 percent, and grocery 1 to 3 percent. A margin that covers your overhead and leaves room for growth is the right target.
How do I calculate selling price from margin?
Divide the cost by (1 minus the margin as a decimal). For a $25 cost at 40% margin: $25 ÷ 0.60 = $41.67.