About the Margin & Markup Calculator

Profit margin and markup are two of the most important metrics in business, yet they are frequently confused. Margin is the percentage of the selling price that is profit: Margin = ((Revenue - Cost) / Revenue) x 100. Markup, on the other hand, is the percentage added to the cost to arrive at the selling price: Markup = ((Revenue - Cost) / Cost) x 100. A product with a 50% markup has only a 33.3% margin — understanding this distinction is critical for pricing strategy.

This calculator operates in three modes. The default "From Prices" mode takes your cost and selling price to compute both margin and markup simultaneously. The "From Margin" mode lets you enter a target profit margin and calculates the selling price you need to charge. The "From Markup" mode works in reverse — enter your desired markup percentage and see the required selling price and equivalent margin.

Whether you are running an e-commerce store, a restaurant, or a consulting business, getting your pricing right directly impacts profitability. Many businesses fail not because they lack revenue, but because their margins are too thin to cover operating costs. Use this tool to experiment with different pricing strategies and find the sweet spot between competitive pricing and healthy profit margins.