Margin & Cost Calculator

When to use?

Use it to check the margin when you know an item's cost and selling price, or to work backward to a selling price from a target margin. Handy for online stores, retail, and freelance quoting.

How to use

• Enter the cost and selling price to calculate the margin.
• Or enter the cost and a target margin to calculate the selling price.

Input Explanation

Enter the item's purchase cost and selling price.

Calculation Basis

Margin = (price − cost) ÷ price × 100. Markup = (price − cost) ÷ cost × 100. Price from target margin: price = cost ÷ (1 − margin/100).

Usage Examples

• Check product margin - Calculate the margin when cost is 5,000 and price is 8,000.
• Set price from target margin - Apply a 40% target margin to the cost to get the selling price.
• Quote unit prices - Add a target margin to the cost to set the price you offer a client.

Examples

• Cost 5,000, price 8,000 → margin 37.5%, markup 60%
• Cost 10,000, target margin 40% → price 16,667

Cautions

• If the cost or selling price is 0 or below, a correct margin and markup cannot be calculated.
• Shipping, packaging, return costs, and changes in platform fees can make the actual net profit rate differ.

Guides

Margin vs. markup

Margin is profit relative to the selling price; markup is profit relative to cost. At cost 1000 sold for 1500, margin is 33.3% and markup is 50%.

Setting a minimum margin

If the cost is 0, markup becomes infinite and cannot be calculated. Include operating costs in the cost to check real profitability.

FAQ

What is the difference between margin and markup?

Margin is profit relative to the selling price; markup is profit relative to the cost.

What is the margin formula?

Margin = (price − cost) ÷ price × 100.

Can margin exceed 100%?

Margin is relative to the selling price, so it never exceeds 100%. Markup (relative to cost) can.

What if the cost is higher than the price?

That is a loss, so the margin is shown as a negative number.

Related Tools

• Break-Even Point Calculator - Calculate the break-even quantity from fixed costs, variable costs, and selling price.
• Fee Calculator - Calculate the net amount after payment and platform fees.
• Price Increase/Decrease Calculator - Enter the current price and a change rate (%) to find the new price and the amount changed.
• Discount Calculator - Enter the original price and discount rate to find the final price and the amount saved.
• Percentage Calculator - Find what percentage a part is of a whole, or calculate a percentage of a value.
• Ratio Calculator - Simplify the ratio of two values, or solve for the unknown in a proportion.