Margin and Markup Calculator
Find the selling price that leaves you the margin you want, or check what a price you already charge really leaves. Type your cost and a target margin or markup, add taxes and card fees if they come out of the price, and read price, profit, margin and markup side by side.
- Free
- No sign-up
- Runs in your browser
Result
Type your cost and a margin, a markup or a price to see the result.
Prices are rounded to the cent. This is arithmetic on your own numbers, not tax or accounting advice.
How the numbers are made
Margin and markup are one profit on two bases
Both start from the same profit, price minus cost. Markup divides it by the cost. Margin divides it by the selling price. Because the price is larger than the cost, the margin is always the smaller number: a 50% markup is a 33.33% margin, and a 100% markup is a 50% margin.
Price from a margin
To keep a given share of every sale, divide the cost by what is left after that share: price = cost ÷ (1 - margin). When taxes and fees are taken out of the price, they come off too: price = cost ÷ (1 - margin - taxes - fee).
Price from a markup
A markup is added on top of the cost: price = cost × (1 + markup). The calculator then shows the margin that price really leaves, after taxes and fees when you fill them in.
Taxes and fees
Both lines are percents of the selling price that never reach you: taxes included in the price, and the fee of the card reader, gateway or marketplace. Each is rounded to the cent and the profit is what remains, so the figures always add up.
Why 100% is the ceiling
Margin, taxes and fees are slices of the same price. If they add up to 100% or more, nothing is left to pay the cost, so no price works and the calculator says so.
What this leaves out
Fixed costs such as rent and salaries, volume discounts, and tax rules that depend on your country or tax regime. Put everything spent per unit in the cost field and use the percents that apply to you.
Formulas
- Margin
- profit ÷ selling price × 100
- Markup
- (selling price - cost) ÷ cost × 100
- Profit per unit
- price - price × taxes - price × fee - cost
- Price from a margin
- cost ÷ (1 - margin - taxes - fee)
- Price from a markup
- cost × (1 + markup)
- Markup to margin
- markup ÷ (100 + markup) × 100
- Break-even price
- cost ÷ (1 - taxes - fee)
The price is set. Now make the shop easy to find
VISU Local gives your business a free page with address, map, hours and phone. Add a dynamic VISU QR to the counter or the menu: you can change where it points later without reprinting it.
Create your free pageSee VISU LocalHow to use it
- Choose what you want to find: a price from a margin, a price from a markup, or the margin of a price you already have.
- Type what one unit costs you. Count everything spent per unit: product, packaging, inbound shipping, labor.
- Type the target margin, the markup or the selling price. Open "Taxes and fees" if a percent of the price goes to taxes or to the card reader.
- Read the price, the profit per unit, the margin and the markup. Download the card or copy the result.
Examples
A 35% margin on a $40 cost
Made-up numbers to show the maths: cost $40.00, target margin 35%. Price = 40 ÷ (1 - 0.35) = $61.54. The profit is $21.54 per unit, which is a 53.85% markup on the cost.
A 50% markup on the same cost
Cost $40.00 with a 50% markup: price = 40 × 1.5 = $60.00. The profit is $20.00, and the margin is 33.33%, not 50%.
With taxes and a card fee
Cost $40.00, target margin 35%, taxes 6% and card fee 3%: price = 40 ÷ (1 - 0.35 - 0.06 - 0.03) = $71.43. Taxes take $4.29, the fee $2.14, and $25.00 is left.
Questions
What is the difference between margin and markup?
They measure the same profit against different bases. Markup is the profit as a percent of the cost. Margin is the profit as a percent of the selling price. A product that costs 40 and sells for 60 has a 50% markup and a 33.33% margin.
How do I calculate a selling price from a margin?
Divide the cost by 1 minus the margin. For a 35% margin on a cost of 40: 40 ÷ 0.65 = 61.54. Multiplying the cost by 1.35 gives 54, which is a 35% markup and only a 25.93% margin.
How do I convert markup to margin?
Margin = markup ÷ (100 + markup) × 100, and markup = margin ÷ (100 - margin) × 100. So a 25% markup is a 20% margin, and a 20% margin needs a 25% markup.
How does a card fee change the price?
The fee is a percent of the price that does not reach you. Type it in the fee line and the calculator raises the price until the margin you asked for is what is left after the fee.
Where does sales tax go?
A tax that is added on top of the price at checkout and passed on, such as sales tax in the United States, is not part of your price: leave the tax line empty. Use the line for taxes that are included in the price you advertise and paid out of it.
What is the break-even price?
The lowest price that covers the cost of the unit plus the taxes and fees taken out of the price, with zero profit. Below it, every sale loses money.
Why does the calculator refuse some numbers?
Margin, taxes and fees are parts of the same price. When they add up to 100% or more, nothing is left to pay the cost and no price exists. The calculator says so instead of printing a number.
Are my numbers stored?
No. The maths runs in your browser. Costs, prices and percents are not uploaded, are not added to the page address and are not saved.