Margin & markup calculator
Enter any two figures: a cost and a price, a cost and the margin you want, a price and a markup. The rest follows.
- Any two figures
- Margin and markup
- Losses shown
Type in any two fields. The two you changed last are kept, and the other three are worked out from them.
Margin
40%
Markup
66.7%
- Cost
- $60.00
- Selling price
- $100.00
- Profit
- $40.00
Of every dollar that comes in, you keep $0.40.
Runs entirely in your browser. Nothing you enter is sent or stored.
Margin and markup are not the same number
Both measure the same profit, against two different things. Margin is the profit as a share of the selling price: what you keep of every dollar that comes in. Markup is the profit as a share of the cost: what you add on top of what you paid.
An item bought at $60 and sold at $100 leaves $40. The margin is 40% (40 of the 100), the markup 66.7% (40 on the 60). Quoting one for the other is the commonest pricing mistake: a 40% markup on $60 gives $84, not $100.
| Margin | Markup |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 25% | 33.3% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
| 75% | 300% |
The markup that gives each margin: markup = margin ÷ (1 − margin).
Pricing for a margin
To keep a given margin, divide the cost by what remains of 100%. Multiplying the cost by the margin is the mistake above again.
A margin cannot reach 100% unless the cost is zero, since the price would have to be infinite. A markup has no ceiling.
What goes into the cost
The calculator gives a gross margin on whatever cost you enter. Put in the purchase price alone and you see the margin on the goods. Add shipping, packaging, payment fees and the time spent, and you see something closer to what the sale really leaves.
Prices on this page are before sales tax, which is collected for the government and is not revenue. To add it, use the GST and QST calculator.
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