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Margin and Markup Calculatorv1.0.0

Converts between cost, selling price, profit, margin percentage, and markup percentage given any two. Disambiguates the common margin-versus-markup mistake by showing both side by side: a 50 percent markup is only a 33 percent margin.

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Ecommerce
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Calculate selling price, profit, margin, and markup from any product cost. Support pricing strategy with a fast margin calculator that accepts decimals and common fractions, normalizes percentages, and updates results in real time. Compare multiple pricing sets side by side, test promotion scenarios, and convert between margin and markup to align finance, sales, and ecommerce teams. Use this pricing calculator to plan profitable list prices, analyze supplier quotes, and model the impact of discounts without spreadsheets.

Follow these steps to compute selling price, profit, margin, and markup with accurate business math.

  • Enter Cost as a decimal or fraction (for example, 12, 12.5, or 1/3).
  • Enter target Margin % as a number with or without the percent symbol.
  • Review calculated Revenue (selling price), Profit, and Markup %.
  • Adjust margin using Margin Adjustment to test price sensitivity in percentage points.
  • Edit Revenue or Profit directly to back-calculate the required margin.

Verify that cost is greater than 0 and margin is below 100 percent. Use Cross-set Comparison to evaluate differences across scenarios.

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.

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. Compare sets A and B to see that Set B revenue and profit are lower, while margin is reduced by 5 percentage points. Use these examples as templates when entering your own 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? Enter 35 or 35% for the same result. The calculator normalizes percentages automatically and prevents invalid values at or above 100 percent.

Can I back into margin from a target price or profit? Yes. Edit Revenue or Profit directly. The calculator computes the required margin and updates all fields so you can 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)