Margin Calculator

The Margin Calculator works out profit margin and markup so you can price products for profitability and understand how much of each sale you actually keep. Given a cost and either a selling price or a desired margin, it returns the profit, the profit margin as a percentage of revenue, and the markup as a percentage of cost. These two figures are frequently confused, and clarifying the difference is one of the most valuable things the tool does.

Profit margin is calculated as profit divided by selling price, expressed as a percentage, while markup is profit divided by cost. Because the denominators differ, a 50 percent markup is only a 33 percent margin, and the gap widens as numbers grow. The calculator can also run in reverse, taking a target margin and a known cost to derive the selling price you must charge, which is exactly what you need when setting prices from a profitability goal.

Retailers and e-commerce sellers use it to set prices that hit gross-margin targets, freelancers and agencies use it to mark up pass-through costs, and finance teams use it to evaluate product-line profitability. It is also useful for quoting jobs, since you can plug in materials and labor cost and immediately see the price required to earn the margin you want.

A practical tip is to always be explicit about whether a stakeholder means margin or markup, because pricing decisions built on the wrong one erode profit silently. Pair this with a Discount Calculator to confirm a sale still leaves you in the black, and a Sales Tax Calculator when you need to present a customer-facing price that includes tax.