Calculators
Margin Calculator
Cost, price, margin: enter any two values and the third works itself out.
Enter any two values — the third is calculated automatically.
Purchase cost
Selling price
Margin (%)
Markup (%)
Margin and markup get mixed up constantly — yet they decide the profitability of every single sale. This calculator sorts it out for you: enter any two values among purchase cost, selling price and margin percentage, and the third is computed live, along with the markup rate. Perfect for setting a selling price from a cost and a target margin, checking whether a product actually makes money, or comparing two suppliers side by side. Results are neatly formatted and recalculate on every keystroke, with no button to press. Free, no sign-up, and usable as often as you like — whether you are pricing a quote or a whole shelf.
How does it work?
- Enter any two values among purchase cost, selling price and margin percentage.
- The third value and the markup rate are calculated instantly.
- Tweak one number to simulate: new price, new margin — the effect shows immediately.
Frequently asked questions
What is the difference between margin and markup?
Both start from the same gross profit (selling price minus cost), but relate it to a different base: margin divides it by the selling price, markup divides it by the cost. Example: bought at 50, sold at 100 → profit of 50, which is a 50% margin but a 100% markup. Confusing the two can halve your profitability without you noticing — always state which one you mean.
How do I set a selling price from a cost and a target margin?
For a target margin (profit as a % of the selling price): price = cost ÷ (1 − margin). Example: a cost of 60 with a 40% target margin → 60 ÷ 0.6 = 100. For a target markup (a % of cost): price = cost × (1 + markup). The calculator handles the conversion — enter the cost and your margin, and the price appears.
What counts as a good margin?
It depends entirely on the sector: grocery retail lives on 15–30% margins, fashion aims for 50–60%, services and software often exceed 70%. The useful benchmark is not a universal number but your break-even point: the margin you generate has to cover your fixed costs and still leave a profit.
Does this tool calculate gross or net margin?
Gross margin: the difference between selling price and purchase cost (or direct cost, if you include it). Net margin additionally deducts overheads — rent, salaries, marketing, insurance. A comfortable gross margin can hide a negative net margin, so keep an eye on both.