Profit Margin and Markup Calculator
Work out your profit margin, markup and selling price in seconds. Enter any two of cost, price, margin, markup or profit and the rest fills in, with a price list for common margins. Switch to the discount calculator to find a sale price or the percentage off, or to the break-even calculator to see how many units you need to sell to cover your costs.
Free · No sign-up
Results are estimates for planning only and are not financial advice.
How to use it
- Choose your currency, then type any two values, for example the cost and the selling price, or the cost and the margin you want.
- Read the margin, markup and profit. The fields you did not type are filled in and marked as calculated.
- Use the price table to compare selling prices at common margins, or add a quantity to see total revenue and profit.
- Switch to Discount to find a sale price or the percentage off, or to Break-even to see how many units cover your fixed costs.
Why use this tool
Any two values
Cost and price, cost and margin, price and markup, profit and margin: any pair works, so you can price a product or check a supplier's quote.
Margin and markup together
See both side by side, so you never confuse a 50% markup with a 50% margin.
Price table
Selling prices for 10% to 70% margins for your cost, with the matching markup.
Discount calculator
Sale price, percentage off or original price, with stacked discounts and sales tax.
Break-even chart
Units and sales you need to cover fixed costs, to hit a profit target, and your margin of safety.
Any currency
Prices in dollars, euros, rupees, yen and more, formatted the way your country writes them.
How to calculate profit margin
Profit margin is profit as a share of the selling price: margin = (price − cost) ÷ price × 100. If you buy a product for 60 and sell it for 100, your profit is 40 and your margin is 40%.
To find the price for a margin you want, divide the cost by (1 − margin). For a 40% margin on a cost of 60: 60 ÷ 0.6 = 100. Do not simply add 40% to the cost; that gives 84, which is only a 28.6% margin.
Margin vs markup: what is the difference?
Markup is profit as a share of the cost: markup = (price − cost) ÷ cost × 100. Margin uses the price instead, so the same sale always has a higher markup than margin. Retailers often talk in markup, while accountants and investors use margin.
Use this table to convert between them:
| Margin | Markup | Price for a cost of 100 |
|---|---|---|
| 10% | 11.1% | 111.11 |
| 20% | 25% | 125 |
| 25% | 33.3% | 133.33 |
| 30% | 42.9% | 142.86 |
| 40% | 66.7% | 166.67 |
| 50% | 100% | 200 |
| 60% | 150% | 250 |
| 75% | 300% | 400 |
What is a good profit margin?
It depends on the business. Grocery stores often run on gross margins of 20% to 30%, clothing and furniture retailers on 40% to 60%, and software or digital products on 70% or more. Restaurants usually aim for food costs of about 30% of the menu price. Compare your margin with others in your industry, and remember that gross margin must also pay for rent, staff, marketing and tax before you make a net profit.
How to calculate the break-even point
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The amount in brackets is the contribution margin: what each sale adds towards covering fixed costs. With fixed costs of 5,000 a month, a price of 50 and a variable cost of 30, each sale contributes 20, so you break even at 250 units, or 12,500 in sales.
Frequently asked questions
What is the formula for profit margin?
Profit margin = (selling price − cost) ÷ selling price × 100. For a cost of 60 and a price of 100, the margin is 40 ÷ 100 = 40%.
How do I calculate a selling price from cost and margin?
Divide the cost by (1 − margin as a decimal). For a 30% margin on a cost of 70: 70 ÷ 0.7 = 100. Enter the cost and margin above and the calculator does it for you.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a cost of 100 gives a price of 150, which is a 33.3% margin. A 50% margin needs a price of 200, which is a 100% markup.
How do I calculate markup?
Markup = (selling price − cost) ÷ cost × 100. To turn a margin into a markup, use markup = margin ÷ (1 − margin).
Can a margin be more than 100%?
No. Profit is part of the selling price, so the margin is always below 100%. Markup has no upper limit: selling something for 5 times its cost is a 400% markup but an 80% margin.
How do I work out a discount percentage?
Discount % = (original price − sale price) ÷ original price × 100. Choose Discount and sale price, enter the original and sale prices, and the percentage appears.
Are two discounts of 20% the same as 40% off?
No. The second discount is taken off the already reduced price, so 20% plus an extra 20% is 36% off in total. Add the second one as an extra discount to see the real total.
Should the cost include VAT or GST?
If you can reclaim the tax, use prices without it for both cost and price. Otherwise, use the cost you actually pay. The calculator does not add tax unless you enter a rate in the discount calculator.
How to price a product for profit
Related tools
Need something built?
Tell us what you want to create.
Tell us what you need built, from a simple website to a complete app, AI solution, automation, or custom system.