How it’s calculated
- Margin on price:
margin = (price − cost) ÷ price - Markup on cost:
markup = (price − cost) ÷ cost
FAQ
When should I use this page instead of the margin-markup calculator?
Use this page when you want a quick margin or markup calculation from cost, selling price, revenue, or profit. Use the margin-markup page when you need a broader comparison table and role guidance between cost, price, margin, and markup.
What is the difference between margin and markup?
Margin divides profit by selling price. Markup divides profit by cost. The same dollar profit produces different percentages, so do not use the terms interchangeably in pricing sheets.
Which value should I enter first?
Start with the two values you trust most, usually cost and selling price. The calculator derives profit, margin, and markup from that pair so you can spot pricing errors quickly.
Why does rounding change the final cents?
Displayed percentages are rounded for readability. For invoices or catalogs, keep the currency amounts as the source of truth and round the final selling price according to your accounting policy.
Does this include tax, fees, or discounts?
No. Enter net cost and net selling price after deciding whether tax, platform fees, shipping, or discounts belong in your pricing model.
Margin and markup pricing notes
Choose the right percentage
Use margin when you want profit as a share of the selling price. Use markup when you want the increase over cost. Mixing the two is a common reason a quoted price misses its target profit.
Build from trusted inputs
Enter cost and selling price when those are known. If only a target margin is known, solve for price and then check whether that price still makes sense after discounts, marketplace fees, and shipping.
Comparison workflow
Keep one baseline case, then change only cost, selling price, or target percentage. This makes it clear whether profit changed because of cost movement, discounting, or a different margin policy.
Common pricing mistakes
Do not apply markup to revenue, do not apply margin to cost, and do not compare gross margin against net margin unless the same expenses are included.
Before publishing prices
Use the result as a pricing check, then confirm tax treatment, payment fees, rounding rules, and any minimum advertised price or contract constraints outside the calculator.