ToolCalcu

Margin Calculator

Work out profit margin, markup, profit, cost and revenue from the values you know. Margin is measured on the selling price and markup on the cost, so they are shown separately.

Your numbers

What the item or service costs you.

What the customer pays.

Result

Please correct the highlighted fields.
Profit margin
30%
Markup
42.86%
Profit
+$30.00
Revenue (price)
$100.00
Cost
$70.00

How margin and markup are calculated

Profit is revenue minus cost. Margin expresses that profit as a share of the selling price, while markup expresses it as a share of the cost. With a cost of 70 and a price of 100, the profit of 30 is a 30% margin but a 42.86% markup.

When you know the cost and a target margin, the price is the cost divided by one minus the margin. When you know a markup, the price is the cost times one plus the markup. Negative results are valid: a price below cost means a loss, shown as negative profit, margin and markup. If revenue or cost is 0, the percentage that would divide by it is undefined and shown as a dash.

Formulas used

Profit = Revenue − Cost
Margin % = Profit ÷ Revenue × 100
Markup % = Profit ÷ Cost × 100
Revenue = Cost ÷ (1 − Margin %)   |   Revenue = Cost × (1 + Markup %)
Margin = Markup ÷ (1 + Markup)

Worked example

A product costs 70 and sells for 100:

  1. Profit: 100 − 70 = 30
  2. Margin: 30 ÷ 100 = 30%
  3. Markup: 30 ÷ 70 = 42.86%

Margin: 30%; markup: 42.86%; profit: $30.00.

Assumptions and limits

  • Amounts are rounded to the cent before percentages are calculated.
  • Taxes, discounts, shipping, fees and overheads are not included unless you put them into cost or revenue.
  • Margin must be below 100% and markup at least −100%.
  • The currency choice only changes how amounts are displayed. No exchange rates are applied.

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