Profit as a percentage of the selling price.
Free small-business tool
Markup & Margin Calculator.
See the selling price and profit created by a target markup or target margin—without mixing up the two percentages.
No accountNo uploadsWorks on mobile
Pricing inputs
Build a price from your cost.
Profit as a percentage of your cost.
Pricing fundamentals
Markup and margin are related, but not interchangeable.
Markup measures profit against cost. Margin measures profit against selling price. A 50% markup on a $100 cost creates a $150 price and a 33.33% margin.
(Price − Cost) ÷ Cost
Use markup when the target percentage is based on what the item or service costs you.
(Price − Cost) ÷ Price
Use margin when the target percentage should represent a share of the final selling price.
Start with true cost
Include the costs relevant to the decision, not only the most obvious material or purchase price.
Check the market
A mathematical target should still be tested against customer value, competition, capacity, and overhead.
Pricing reference
Compare target margins at a glance.
Use the conversion chart to see required markup, selling-price multiplier, and a $100 cost example.
Common questions
Markup and margin answers.
What is the difference between markup and margin?
Markup divides profit by cost; margin divides profit by selling price. The same sale therefore has different markup and margin percentages.
How do I price for a 40% margin?
Divide cost by one minus the margin. A $100 cost divided by 0.60 produces a selling price of $166.67.
Can margin be 100%?
A finite selling price cannot create a 100% margin when cost is greater than zero. As the target margin approaches 100%, the required price rises sharply.
Does the result include overhead and taxes?
Only if those amounts are already included in the cost you enter. Decide which costs belong in your pricing model before using the result.