Calculator
Margin, Markup & Profit Calculator
Calculate profit or loss, margin, markup and required cost or selling prices.
Price calculation
Margin relates profit to selling price; markup relates it to cost price.
Margin = profit ÷ selling price
Markup = profit ÷ cost price
Result
Profit
20.00 €
Selling price composition
Profit and loss
Profit is selling price minus cost price. A negative result is a loss and remains mathematically unchanged.
Margin
Margin is profit divided by selling price. It is undefined when selling price is zero.
Markup
Markup is profit divided by cost price. It is undefined when cost price is zero.
Target prices
Target margin uses cost ÷ (1 − margin). Target markup multiplies cost by 1 + markup.
Discounts and tax
Use the percentage calculator for general percentages and discounts, and the sales tax calculator for taxes.
Frequently asked questions
How do I calculate margin?
Profit divided by selling price, times 100.
How do margin and markup differ?
Margin uses selling price as its base; markup uses cost price.
Why is 20% margin not 20% markup?
They use different base values.
How is profit or loss calculated?
Selling price minus cost price; a negative result is a loss.
How do I calculate selling price from margin?
Divide cost by one minus target margin as a decimal.
How much should I mark up?
The selected markup is applied to cost price.
How do I find cost from selling price and margin?
Multiply selling price by one minus margin as a decimal.
Can calculated margin be negative?
Yes, when selling below cost.
Can calculated markup be negative?
Yes, when selling below cost.
Why is markup undefined at zero cost?
Its formula would divide by zero.
Does this calculate discounts?
No. Use the percentage calculator.
Does it calculate sales tax?
No. Use the sales tax calculator.