Profit Margin & Markup Calculator
Calculate profit margin and markup from cost and selling price, or find the price for a target margin.
Margin vs markup
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 100% markup is only a 50% margin. Mixing them up leads to underpricing.
Pricing for a target
To hit a target margin, divide the cost by (1 − margin). For a 50% margin on an $18 cost, charge $36.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Include fees, shipping and your time in the cost.
- Check margin after discounts.
- Review prices as costs change.
Learn more
Frequently asked questions
Is margin the same as markup?
No. Margin uses the price as the base, markup uses the cost.
What is a good margin?
It varies, many product businesses aim for 40-60% gross margin.
Does it include overheads?
No, only the costs you enter.
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