Profit margin and markup calculator

Margin and markup both measure profit, but they divide by different bases. Use this calculator to turn cost and price into both percentages, set a target margin or markup to find price, or recover cost from a priced item. Optional quantity, discount, and fixed-cost fields help you see totals and break-even units. All money math uses integer minor units for the currency you pick. Nothing is uploaded.

Profit margin and markup calculator

How to use the profit margin calculator

  1. Choose a currency for display only. Amounts are not converted between currencies.
  2. Pick a mode: cost and price, price from margin, price from markup, or cost from margin.
  3. Enter the values for that mode. Sample numbers load so you see a result immediately.
  4. Optionally add quantity, a discount percent, or fixed costs for totals and break-even units.
  5. Read margin and markup side by side, then use Reset or Copy result as needed.

Formula and method

Profit margin = (price − cost) ÷ price × 100. The denominator is selling price.

Markup = (price − cost) ÷ cost × 100. The denominator is cost.

Price from margin = cost ÷ (1 − margin ÷ 100). Margin must stay below 100%.

Price from markup = cost × (1 + markup ÷ 100).

Cost from margin = price × (1 − margin ÷ 100).

Money is stored as integer minor units (for example cents) using each currency’s ISO fraction digits from Intl, then rounded only when converting back for display.

margin=(P−C)/P×100; markup=(P−C)/C×100; P=C/(1−m/100); P=C×(1+k/100)

Worked example

A product costs 40 and sells for 50 in your chosen currency.

Profit is 10. Margin is 10 ÷ 50 × 100 = 20%. Markup is 10 ÷ 40 × 100 = 25%.

To hit a 20% margin on a 40 cost, price = 40 ÷ (1 − 0.20) = 50. The same 25% markup also yields 50.

If you sell 3 units, revenue is 150, total cost 120, and total profit 30. A 10% discount on the 50 price leaves 45 and a new margin of about 11.11%.

Frequently asked questions

What is the difference between margin and markup?

Both use the same profit amount. Margin divides by price; markup divides by cost. A 20% margin equals a 25% markup when cost is 40 and price is 50.

Why must margin stay below 100%?

Price from margin divides by (1 − margin/100). At 100% that denominator is zero, and above 100% the price would not make sense for a normal sale.

Does the currency selector convert money?

No. It only chooses the Intl symbol and minor-unit scale (for example cents versus whole VND). Enter amounts already in that currency.

How is break-even calculated?

Break-even units = fixed costs ÷ profit per unit, when profit per unit is positive. It is an estimate for planning, not accounting advice.

Are my numbers private?

Yes. Calculations run in your browser and are not stored on a server.

Disclaimer

This tool provides estimates only and is not financial, medical, or legal advice.