Profit Margin Calculator
Margin, markup, profit from any two values.
Fill in any two boxes. The calculator works out the rest. Clear a box to choose which two you use.
About this tool
Profit Margin Calculator finds gross profit, margin and markup from any two known values. Use it to price products for a target margin, check what a markup really earns, or compare supplier quotes.
How to use Profit Margin Calculator
- Fill in any two of cost, revenue, margin and markup.
- Clear a box to change which two you use.
- Read the profit, margin and markup.
Questions people ask
What are the margin and markup formulas?
Profit = revenue − cost. Margin = profit ÷ revenue × 100. Markup = profit ÷ cost × 100. A cost of 60 sold for 100 gives a profit of 40, a 40% margin and a 66.67% markup.
How do I set a price for a target margin?
Price = cost ÷ (1 − margin). For a 40% margin on a cost of 60, price = 60 ÷ 0.6 = 100. Adding 40% to cost (a 40% markup) gives only 84, which is a 28.6% margin.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin). A 50% markup is a 33.3% margin, and a 50% margin is a 100% markup.