Margin Calculator

How This Calculator Works

Profit margin and markup both describe the same dollar profit, but as a percentage of two different numbers — margin is profit divided by the selling price, markup is profit divided by the cost — which is exactly why the two percentages are never equal and are easy to confuse. Enter whichever two of cost, selling price, and margin you already know, and this calculator finds the third, along with the profit and markup.

The Formula

Profit: $\vD{\text{Profit}} = \vB{\text{Selling Price}} - \vA{\text{Cost}}$

$$\text{Margin} = \frac{\vD{\text{Profit}}}{\vB{\text{Selling Price}}} \times 100$$ $$\text{Markup} = \frac{\vD{\text{Profit}}}{\vA{\text{Cost}}} \times 100$$

Selling price, from cost and a target margin:

$$\vB{\text{Selling Price}} = \frac{\vA{\text{Cost}}}{1 - \vC{\text{Margin}} \div 100}$$

Cost, from selling price and a target margin:

$$\vA{\text{Cost}} = \vB{\text{Selling Price}} \times \left(1 - \vC{\text{Margin}} \div 100\right)$$

Worked Example

An item costs $60 and sells for $100:

1. Profit: $\vB{100} - \vA{60} = \vD{40}$ dollars.
2. Margin: $\vD{40} \div \vB{100} \times 100 = 40\%$.
3. Markup: $\vD{40} \div \vA{60} \times 100 \approx 66.67\%$.

The same $40 profit is a 40% margin but a 66.67% markup — the two numbers describe the exact same profit, just relative to different bases.