Margin Calculator
Calculate profit margin, markup percentage, and selling price.
100% Client-Side
What is Margin Calculator?
A margin calculator computes profit margin, markup, and gross profit from cost and selling price. It's essential for pricing products, analyzing business profitability, and understanding the difference between margin and markup -- two commonly confused metrics.
How to Use
- Enter the cost price (what you paid for the item)
- Enter the selling price (what the customer pays)
- View the profit, margin percentage, and markup percentage
- Use reverse mode to find the selling price from a desired margin
Formula
Margin = ((Selling Price - Cost) / Selling Price) x 100; Markup = ((Selling Price - Cost) / Cost) x 100
Frequently Asked Questions
- What is the difference between margin and markup?
- Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A $60 item costing $40 has a 33.3% margin but a 50% markup.
- What is a healthy profit margin?
- It varies by industry. Retail averages 2-5%, software/tech 15-25%, luxury goods 50%+. Online businesses and SaaS typically have higher margins than physical product businesses.
- How do I set a price based on a target margin?
- Selling Price = Cost / (1 - Target Margin%). To achieve a 40% margin on a $30 item: $30 / (1 - 0.40) = $50.