Margin Calculator

Calculate profit margin and markup from cost and revenue. Switch between margin and markup modes instantly. Free, runs 100% in your browser.

Reference

Margin vs. markup: what is the difference?

Profit margin and markup both measure profitability but use different denominators. Margin expresses profit as a percentage of revenue (selling price) — it tells you what fraction of each dollar earned is profit. Markup expresses profit as a percentage of cost — it tells you how much you added on top of your cost. A 50% markup is only a 33.3% margin. Understanding both is essential for pricing, accounting, and financial analysis.

Formulas

Profit: Profit = Revenue − Cost
Margin: Margin (%) = (Revenue − Cost) / Revenue × 100
Markup: Markup (%) = (Revenue − Cost) / Cost × 100

Example: Cost = $60, Revenue = $100
Profit = $40, Margin = 40%, Markup = 66.7%

Converting: Margin = Markup / (1 + Markup) and Markup = Margin / (1 − Margin)

Common use cases

  • Pricing strategy — set selling prices that achieve your target profit margin.
  • Retail — calculate markup on products to ensure profitability after all costs.
  • E-commerce — factor in platform fees, shipping, and returns when setting margins.
  • Freelancing — determine your effective margin after expenses on project-based work.
  • Financial analysis — compare gross margins across products, services, or competitors.

Privacy

All calculations run 100% in your browser. No data is sent to any server.

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