Markup & Margin Calculator
Markup and profit margin calculator guide
Use this free calculator to set a selling price, check gross profit, convert between markup and profit margin, or work backward from the numbers you already know. Enter any two values and the calculator finds the remaining pricing metrics.
What are markup and profit margin?
Markup is the percentage added to a product or service cost to set its selling price. Profit margin is gross profit expressed as a percentage of selling price. Both describe the same gross profit, but they use different bases, so their percentages are different.
Markup and profit margin formulas
Markup vs. profit margin
If an item costs $80 and sells for $100, the gross profit is $20. That equals a 25% markup because $20 is 25% of cost, and a 20% profit margin because $20 is 20% of selling price.
Read our detailed margin vs. markup guide for conversion formulas, a quick-reference table, and more pricing examples.
| Metric | Calculation | Example |
|---|---|---|
| Markup | Profit ÷ Cost | $20 ÷ $80 = 25% |
| Profit margin | Profit ÷ Selling Price | $20 ÷ $100 = 20% |
Selling on Amazon? Use the Amazon FBA Fee Calculator to price after referral and fulfillment fees. Selling on Etsy? Try the Etsy Fee Calculator. Selling on eBay? Use the eBay Fee Calculator.
Frequently asked questions
Is markup the same as profit margin?
No. Markup uses cost as its base, while profit margin uses selling price. A positive markup will always be higher than the equivalent profit margin.
How do I calculate a 30% profit margin?
Divide the cost by 0.70. For example, if your cost is $70, a 30% target profit margin requires a $100 selling price.
Does this calculator show gross or net profit margin?
It shows gross profit and gross profit margin based on the cost and selling price you enter. Include shipping, fees, taxes, or operating expenses in your cost if you want them reflected in the result.