Profit margin & markup calculator
Know your cost and price? Or the margin you want? Enter any two values and the calculator fills in the others — profit, gross margin and markup.
Runs entirely in your browser. Nothing you enter is sent to a server.
Margin vs markup
Both compare profit with something else. Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product that costs $40 and sells for $65 has $25 profit: a 38.5% margin but a 62.5% markup.
| Markup | Margin |
|---|---|
| 25% | 20% |
| 50% | 33.3% |
| 100% | 50% |
| 150% | 60% |
| 300% | 75% |
Formulas
- Price from margin:
price = cost ÷ (1 − margin) - Price from markup:
price = cost × (1 + markup) - Margin from markup:
margin = markup ÷ (1 + markup)
Charging sales tax? Add the right GST/HST/PST with the Canadian sales tax calculator.
Frequently asked questions
Is a 50% markup a 50% margin?
No. A 50% markup is a 33.3% margin. Doubling the cost (100% markup) gives a 50% margin.
Should margin include sales tax?
No. Calculate margin on the price before tax; sales tax is collected for the government.
What’s a good profit margin?
It varies widely: grocery retail runs on a few percent, while software and consulting often exceed 50%.