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Home › Side Hustle & Business › Profit Margin & Markup Calculator
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Profit Margin & Markup Calculator

Calculate profit margin and markup from cost and selling price, or find the price for a target margin.

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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

An item costing $18 and sold for $30 has a $12 profit, a 40% margin and a 66.7% markup. To get a 50% margin, charge $36.

Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.

Tips and common mistakes

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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Results are estimates and not financial advice.