Pricing
Profit Margin & Markup Calculator
See margin and markup together from cost and price, or work backwards from a target margin or markup to the price you should charge.
Selling price
$100.00
- Profit
- $40.00
- Margin
- 40%
- Markup
- 66.67%
Margin = profit ÷ price. Markup = profit ÷ cost. They're always different numbers for the same sale — that's why so many people mix them up.
How this calculation works
Margin is based on price
Margin % = (price − cost) ÷ price × 100. It tells you what share of the sale price is profit.
Markup is based on cost
Markup % = (price − cost) ÷ cost × 100. It tells you how much you've added on top of what something cost you.
Frequently asked questions
What's the difference between margin and markup?+
Margin is profit as a percentage of the selling price (profit ÷ price). Markup is profit as a percentage of the cost (profit ÷ cost). For the same sale, markup is always a bigger number than margin — confusing the two is one of the most common small-business pricing mistakes.
If I want a 30% margin, is that the same as a 30% markup?+
No. A 30% margin on a $60 cost means a price of about $85.71 (cost ÷ (1 − 0.30)). A 30% markup on the same $60 cost means a price of $78 (cost × 1.30). Use the 'From cost + margin' or 'From cost + markup' tabs to see the exact difference for your numbers.
Pricing a full project, not just one item? Use the Project Quote Calculator to apply a margin across estimated hours and a contingency buffer.