Margin and Markup Calculator

A margin and markup calculator computes selling price, profit, margin, and markup from any product cost, accepting decimals and common fractions and normalizing percentages as it updates results in real time. Comparing multiple pricing sets side by side, testing promotion scenarios, and converting between margin and markup keeps finance, sales, and ecommerce teams aligned on the same numbers when planning profitable list prices, analyzing supplier quotes, and modeling the impact of discounts.

Selling price, profit, margin, and markup all derive from cost and a target margin, using accurate business math.

• Cost accepts a decimal or fraction (for example, 12, 12.5, or 1/3).
• Margin % accepts a number with or without the percent symbol.
• Revenue (selling price), Profit, and Markup % are calculated from cost and margin.
• Margin Adjustment tests price sensitivity in percentage points without re-entering the base margin.
• Editing Revenue or Profit directly back-calculates the required margin.

Cost must be greater than 0 and margin must stay below 100 percent. Cross-set comparison evaluates differences across multiple pricing scenarios at once.

Apply the calculator to support pricing strategy, profitability analysis, and quote creation.

• Set profitable list prices from known costs and target margins for ecommerce and retail.
• Convert between margin and markup to standardize reporting across teams and systems.
• Test promotions by lowering margin and viewing profit impact before launch.
• Compare supplier options by modeling how cost changes affect revenue and profit.
• Build B2B quotes that meet customer price constraints while protecting margin.
• Plan bundles and kits by checking whether blended margins meet category targets.

Interpret outputs to make clear pricing decisions. Selling Price equals cost divided by one minus margin. Profit equals selling price minus cost. Margin equals profit divided by selling price and reflects profit as a share of revenue. Markup equals profit divided by cost and reflects the uplift over cost. Convert between the two with Markup = Margin / (1 − Margin) and Margin = Markup / (1 + Markup). Use percentage points when adjusting margin so absolute changes are not confused with relative changes.

Price a $20 cost item at a 40 percent margin. Selling Price = 20 / (1 − 0.40) = $33.33. Profit = 33.33 − 20 = $13.33. Markup = 13.33 / 20 = 66.65 percent. Reduce margin to 35 percent to test a promotion. New price = 20 / 0.65 = $30.77, profit = $10.77, and markup ≈ 53.85 percent. Comparing sets A and B shows Set B revenue and profit are lower, while margin is reduced by 5 percentage points. These examples serve as templates for entering cost and margin values.

What is the difference between margin and markup? Margin measures profit as a share of the selling price. Markup measures profit as a share of cost. The same price can show different percentages because the bases differ.

Why does a 50 percent markup not equal a 50 percent margin? A 50 percent markup on a $10 cost gives a $15 price and a $5 profit. Margin equals 5 ÷ 15 = 33.33 percent, not 50 percent.

How do I handle percentages in the inputs? 35 or 35% both give the same result. Percentages normalize automatically, and invalid values at or above 100 percent are rejected.

Can I back into margin from a target price or profit? Yes. Editing Revenue or Profit directly computes the required margin and updates all fields to finalize pricing.

• Selling Price = Cost / (1 − Margin)
• Profit = Selling Price − Cost
• Margin = Profit / Selling Price
• Markup = Profit / Cost
• Markup from Margin: Markup = Margin / (1 − Margin)
• Margin from Markup: Margin = Markup / (1 + Markup)
• Markup % = Margin % / (1 − Margin %)
• Selling Price = Cost × (1 + Markup)