CraftTools

Profit Margin & Markup Calculator

Guide: Profit Margin vs Markup vs ROI: What Each Means

$
$
Profit margin
40.00%
Markup
66.67%
Profit
$40.00
Cost
$60.00
Selling price
$100.00

Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 50% markup is only a 33% margin, so the two are easy to mix up.

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How to use

  1. 1Choose what you know: cost and price, or a margin or markup.
  2. 2Enter the numbers.
  3. 3Read the margin, markup, profit and selling price.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A product costing 60 and selling for 100 has a 40 percent margin but a 66.7 percent markup.

How do I find the selling price from a margin?

Divide the cost by 1 minus the margin. For a 40 percent margin on a cost of 60, the price is 60 / 0.6 = 100.

How do I find the selling price from a markup?

Multiply the cost by 1 plus the markup. A 50 percent markup on 60 gives 90.

Why can a margin not be 100 percent?

A 100 percent margin would mean the cost is zero, and the price could never be worked out from a cost.

Is my data sent anywhere?

No. Everything is worked out in your browser and nothing is sent to us.

Read the guide

Learn how this works and how to get the most from it.

Money, health & time

Profit Margin vs Markup vs ROI: What Each Means

The difference between margin and markup, how to price from a target, how to convert between them, and how to read return on investment.

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