What this calculator does
Margin and markup are not the same. Margin is profit as a share of the selling price; markup is profit as a share of cost. Confusing them leads to underpricing.
This calculator analyses cost and selling price, or calculates the price required to hit a target margin. It is useful for retail, e-commerce and service pricing.
Margin and markup
Margin = (Price − Cost) ÷ Price · Markup = (Price − Cost) ÷ Cost At a cost of $60 and a price of $100, margin is 40% and markup is 66.7%. A 40% margin is not the same as adding 40% to cost.
How this calculator works
- 01
Enter cost and price
Use net amounts and include all direct costs for a realistic margin.
- 02
Or set a target margin
Switch modes to calculate the selling price needed for a desired margin.
- 03
Review profit
Compare margin, markup and absolute profit before setting a price.
Frequently asked questions
What is a good profit margin?
It depends on the industry and cost structure. Retail often runs 20–50% gross margin, while services can be higher. Net profit after all expenses is what ultimately matters.
Should I use margin or markup?
Use margin when comparing profitability against revenue. Use markup when applying a standard percentage to cost. Be explicit about which one you mean.
Are shipping and fees included?
Not automatically. Subtract shipping, payment processing, returns and taxes to see the true contribution margin.
Data basis: 2026 · Annual constants live in structured JSON files and are updated once a year.
Results are unverified model calculations and do not replace tax, legal or financial advice.