⚙️ Configuration
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Margin is the percentage of the selling price that is profit.
Margin = (Price − Cost) / Price × 100
Markup is the percentage of the cost that is added as profit.
Markup = (Price − Cost) / Cost × 100
Example: Buy for $60, sell for $100 → Margin = 40%, Markup = 66.7%
📊 Analysis
Margin
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Gross Profit
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Markup
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Price / Cost Ratio
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About the Margin Calculator
Margin and markup are often confused. Margin is the percentage of the selling price that is considered profit, while markup is the percentage added atop the cost to achieve that selling price. A 50% markup on a $100 cost gives a $150 selling price, but the margin achieved is only 33.3%. Understanding this difference is crucial for pricing, negotiations, and financial planning.
How to Use
- Select the Cost & Price tab to input standard figures and discover your margin, markup, and gross profit.
- Select the Target Margin tab to backwards calculate your required selling price based on goal numbers.
- Results automatically compute as you type. Real-time, instant analysis.