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 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.