Margin Calculator
Calculate profit margin and markup from cost and selling price, or find the right selling price from cost and desired margin percentage.
About the Margin Calculator
This margin calculator solves the two pricing problems every seller faces. Given your cost and a target margin percentage, it returns the selling price and gross profit. Given cost and selling price, it returns both the profit margin and the markup percentage — two numbers that are often confused but never equal.
The distinction matters: margin is profit as a share of the selling price (profit ÷ price × 100), while markup is profit as a share of cost (profit ÷ cost × 100). Pricing to "add 30%" when you meant a 30% margin quietly undercharges — a 30% margin actually requires a 42.9% markup.
Retailers, wholesalers, freelancers and e-commerce sellers use this calculator daily to set prices, check supplier quotes and keep gross margins healthy. The results are plain numbers, so they work in any currency.
How to Use the Margin Calculator
- 1To set a price: enter your cost and desired margin percentage in the first section.
- 2Read the selling price and gross profit instantly.
- 3To check a price: enter cost and selling price in the second section.
- 4Compare the margin and markup percentages shown side by side.
Frequently Asked Questions
What is the difference between margin and markup?
Margin measures profit against the selling price; markup measures the same profit against the cost. Buy at 80, sell at 120: profit is 40, so margin is 40 ÷ 120 = 33.3% while markup is 40 ÷ 80 = 50%. Markup is always the bigger number. Mixing them up is one of the most common — and expensive — pricing mistakes in retail.
How do I calculate selling price from cost and margin?
Divide the cost by (1 − margin ÷ 100). For a 40% margin on a cost of 60: 60 ÷ 0.60 = 100. Do not just add 40% to the cost — that gives 84, which is only a 28.6% margin. This calculator applies the correct division formula automatically in its first section.
What is a good profit margin for a business?
It varies widely by industry. Grocery retail often runs on 1–3% net margins with high volume, restaurants 3–9%, general retail gross margins of 25–50%, software and services 70%+ gross. As a broad rule of thumb, a 10% net margin is average, 20% is strong. Compare against competitors in your own sector rather than a universal benchmark.
Why can't the margin be 100% or more?
Margin is profit divided by selling price, and profit can never equal or exceed the price unless the item cost you nothing or less. As cost approaches zero, margin approaches 100% but never reaches it. Markup, by contrast, has no ceiling — a 100% markup simply means selling at double the cost, which equals a 50% margin.
Should I include shipping and overheads in the cost?
For gross margin, use the full landed cost of goods: purchase price plus freight, duties and direct packaging. Overheads like rent, salaries and marketing belong to net margin, calculated on total revenue and expenses instead. Using landed cost in this calculator keeps your gross margin honest and prevents pricing that only looks profitable.