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Markup vs Margin Calculator

Calculate markup, gross margin and a target selling price.

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YOUR RESULTS
Margin (%)40
Markup (%)66.666667
Target margin price100

Estimates only. Verify financial, tax and shipping decisions.

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About the Markup vs Margin Calculator

Margin and markup describe the same profit from different angles. A 40% margin is not the same as a 40% markup.

Formula or method

Profit = selling price − unit cost. Margin = profit ÷ selling price × 100. Markup = profit ÷ unit cost × 100. Target price for target margin = cost ÷ (1 − target margin).

Worked example

At a cost of 60 and a selling price of 100, profit is 40, margin is 40%, and markup is about 66.67%. A 40% target margin on a cost of 60 implies a price of 100.

How to use the tool

Start with the example values above, then replace each input with your own figures. The results update immediately. Review the units, denominators, and assumptions before using any number in an important decision.

Assumptions and limitations

Margin cannot be calculated for a selling price of zero, and markup is undefined for a cost of zero. Treat overhead or transaction charges consistently when comparing products.

Frequently asked questions

Which should I use for product pricing?

Target margin is useful for revenue-based profitability goals; markup is useful when building prices upward from cost. Use one consistently.

Privacy and support

Your inputs are processed locally in your browser. ToolMosaic does not upload or store the values you enter in this tool. Our tools are free, and we appreciate your support.