Profit Margin & Markup Calculator
Price for a target margin
Profit
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Profit margin–
Markup–
Price for desired margin–
Profit at that price–
Margin vs markup
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of cost. A product that costs $60 and sells for $100 has a 40% margin but a 66.7% markup.
How to price for a target margin
Divide your cost by (1 − margin). For a 40% margin on a $60 cost the price is $60 ÷ 0.6 = $100.
Frequently asked questions
What is a good profit margin?
It depends on the industry. Many service businesses aim for 30–60%, retail often runs 20–50%.
Why are margin and markup different?
They use different bases: margin divides by price, markup divides by cost.
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