Profit Margin & Markup Calculator: Cost & Selling Price

Calculate profit, margin, and markup from cost and selling price, or find a selling price that meets a chosen margin or markup. All money inputs refer to the same item or matching total.

Compare margin, markup, and selling price

Use cost and selling price on the same basis. This tool subtracts only the cost you enter; it does not automatically include fees, overhead, taxes, or other expenses.

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For worked examples, read our guide to margin, markup, and selling price formulas.

Margin vs. markup: what is the difference?

Both start from profit = selling price - cost, but use different denominators:

Margin (%) = profit / selling price x 100.
Markup (%) = profit / cost x 100.

With $80 cost and a $100 selling price, profit on the entered cost is $20. Margin is 20 / 100 = 20%, while markup is 20 / 80 = 25%.

Find a selling price from a target margin

Price = cost / (1 - margin / 100). For $80 cost and a 20% target margin, price is $80 / 0.80 = $100. A target margin must be below 100% when cost is positive.

Find a selling price from a target markup

Price = cost x (1 + markup / 100). For $80 cost and a 20% target markup, price is $96. Profit is $16 and the resulting margin is approximately 16.67%, not 20%.

Frequently asked questions

How is the target selling price rounded?

The tool rounds up to a whole cent so the price meets the selected target under this simple cost model. Profit and percentages are then calculated from that rounded selling price. Percentage displays use two decimal places.

Can the result be negative?

Yes. In analysis mode, selling below cost produces a negative profit, margin, or markup when their denominators are nonzero. This indicates a loss on the cost you entered.

What if cost or selling price is zero?

Analysis mode allows either amount to be zero. Markup is undefined at zero cost, and margin is undefined at zero selling price. Target-price modes require positive cost.

Is this gross margin or net margin?

That depends on what your cost input represents. A product cost comparison is not automatically a net-profit calculation. Use consistently defined costs and revenue, and account separately for expenses not included.

What input limits apply?

Money amounts can range from zero to $100 million with two decimal places. Target margin can be 0% to 99.99%; target markup can be 0% to 10,000%. Target-price modes require positive cost, and calculated prices may not exceed $100 million. These are calculation limits, not pricing recommendations.

To apply price reductions, use our Discount Calculator. To calculate hourly work charges, use the Billable Hours Calculator.