Margin Calculator
Calculate profit margin, markup, and pricing targets for products and services. Built for ecommerce, retail, and service businesses.
Enter values and click Calculate to see margin results.
Margin vs Markup
Margin Formula
Margin = (Price - Cost) / Price
Margin shows the share of selling price that is profit.
Markup Formula
Markup = (Price - Cost) / Cost
Markup shows how much above cost you priced the item.
Target Pricing Formulas
Find Selling Price
Price = Cost / (1 - Margin%)
Use this when you know your cost and need a target margin.
Find Maximum Cost
Max Cost = Price x (1 - Margin%)
Use this when market price is fixed and margin target is known.
Frequently Asked Questions
What is profit margin?
Profit margin is the percentage of revenue kept as profit after costs. Formula: Margin = (Selling Price - Cost) / Selling Price x 100.
What is the difference between margin and markup?
Margin uses selling price as the denominator, while markup uses cost. For the same values, markup is usually higher than margin.
How do I find selling price from cost and target margin?
Use Selling Price = Cost / (1 - Margin%). Example: cost $40 and target margin 30% gives selling price $57.14.
How do I find the maximum cost for a target margin?
Use Maximum Cost = Selling Price x (1 - Margin%). If a product sells for $100 at 30% target margin, maximum cost is $70.
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