Profit margin & markup calculator
Margin, markup and price from cost.
Put this calculator on your site
Get it as a ready-made Gravity Forms template. Import it, match your colors, publish.
- Import-ready form file
- Step-by-step build guide
- Works with any theme
How it's calculated
Margin and markup describe the same profit from two sides. Margin is profit divided by the selling price, the share of each sale you keep. Markup is profit divided by cost, how much you added on top. A 40% margin is a 66.7% markup. To hit a target margin, divide the cost by one minus the margin: at a 40% margin, a $60 cost needs a $100 price, not $84.
What is the difference between margin and markup?
Margin is measured against the price, markup against the cost, so markup is always the bigger number. 50% markup on a $10 cost gives a $15 price and a 33% margin. Mixing them up is the classic way to underprice: adding a "40% margin" as a 40% markup gives you 28.6%.
What is a good profit margin?
It depends on the business. Grocery runs 2–3% net, restaurants 3–9%, retail 20–50% gross, software 70–90% gross. Compare gross margin (this tool) with others in your industry, and remember overhead and tax still come out of it.
How do I price for a 30% margin?
Switch to "Cost and target margin" and enter 30. The price is cost divided by 0.7. For a $21 cost that is $30, giving $9 profit, which is 30% of the price and a 42.9% markup.
Results are estimates for informational purposes only and are not financial, medical or legal advice.