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Margin and markup calculator

Work out the margin and markup of a product from its cost and price, or the price you need for a wanted margin. Free, with no sign-up needed.

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How to use: Margin and markup calculator

  1. Choose what you want to work out: margin and markup from cost and price, or the price needed for a wanted margin or markup.
  2. Type your product's cost per unit and the matching value (price, margin or markup).
  3. Read the profit per unit, the margin on the price and the markup on the cost. Press copy to keep the result.

What it accepts and what you get

Input
The cost per unit and the selling price, or the margin or markup you want to reach. Accepts a decimal comma or point.
Output
Profit per unit, margin (on the price) and markup (on the cost), or the selling price needed.
Where your data is processed
Your data is processed in your browser and is not sent to our servers.

Limitations and notes

  • Margin is worked out on the selling price and markup on the cost: they are different percentages. A 50% markup equals a 33.3% margin.
  • Use amounts without taxes and in your own currency. The calculation does not include fees or fixed costs.
  • A margin of 100% or more is not possible with a positive cost; the tool warns you.
  • Everything is calculated in your browser and nothing is sent or stored.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit divided by the selling price. Markup is profit divided by the cost. For the same product, markup is always larger than margin.

How do I price for a 30% margin?

Choose “Price for a wanted margin”, type your cost and 30. The price is the cost divided by 0.70.

Does it include VAT?

No. Use the cost and price without VAT so the margin is the real one.

When to use it

  • When pricing a new product.
  • To check whether a promotion or discount still leaves a margin.
  • To compare the margin of several suppliers.

Examples

Known margin
Cost 60 and price 100: profit 40, margin 40% and markup 66.67%.
Price for a margin
Cost 60 and wanted margin 40%: the selling price is 100.
Price for a markup
Cost 60 and markup 50%: the price is 90 and the real margin is 33.33%.

Common mistakes

  • Mixing up margin and markup and setting a price that is too low.
  • Using the price with VAT to work out the margin.
  • Forgetting fees and shipping, which lower the real margin.