Profit Margin and Markup Calculator
Calculate profit margin, markup, selling price, reverse cost and estimated profit after fees. Use target pricing and discount planning to see what you may need to charge before offering a product or service.
Business Pricing Calculator
Select the calculation that matches the question you need to answer.
Analyse a selling price
* Required fieldsAdditional costs and selling fees
Add only costs that apply to one unit or transaction. Leave unused fields at zero.
Your pricing results appear here
Enter your figures and select Calculate Results to see a per-unit and total-order breakdown.
After the costs and fees entered above.
Per-unit breakdown
What Is the Profit Margin and Markup Calculator?
This free profit margin and markup calculator helps businesses examine a price from more than one direction. You can calculate margin and markup from a known cost and selling price, set a price for a target margin, apply a target markup, estimate the maximum affordable cost, or plan a discounted price without accidentally losing the margin you intended.
A basic calculation uses the cost of an item and its selling price. Real sales can also involve shipping, packaging, labour, marketplace fees, payment-processing charges and fixed transaction fees. The optional cost fields let you include these amounts and see an estimated result after the expenses you entered.
How to Use This Business Pricing Calculator
- Select the mode that matches the figure you are trying to find.
- Choose a currency. The currency changes the display symbol, not the mathematics.
- Enter the base product or service cost and the required price or percentage.
- Add shipping, packaging, labour, other costs and selling fees when applicable.
- Enter the quantity if you want an order-level profit estimate.
- Select Calculate Results and review the explanation and breakdown.
- Copy, print or download the calculation if you need to keep a record.
Which calculation mode should you use?
| Mode | Use it when | Main result |
|---|---|---|
| Profit Analysis | You already know the cost and selling price. | Profit, margin, markup and break-even price |
| Target Margin | You know the cost and the percentage of revenue you want to retain. | Required selling price |
| Target Markup | You price by adding a percentage to your entered costs. | Required selling price |
| Reverse Cost | You know the price and margin target but need a maximum cost. | Maximum affordable base cost |
| Discount Planner | You want to run a sale without losing a chosen margin. | Required pre-discount list price |
Profit Margin vs Markup: What Is the Difference?
Profit margin and markup use the same profit amount but compare it with different figures. Margin compares profit with selling revenue. Markup compares profit with cost. That is why the two percentages are not interchangeable.
Quick margin-to-markup reference
| Target margin | Equivalent markup | Price when cost is 100 |
|---|---|---|
| 10% | 11.11% | 111.11 |
| 20% | 25% | 125.00 |
| 25% | 33.33% | 133.33 |
| 30% | 42.86% | 142.86 |
| 40% | 66.67% | 166.67 |
| 50% | 100% | 200.00 |
| 60% | 150% | 250.00 |
How Target-Margin Pricing Works
When you know the target margin, simply adding that percentage to the cost will not produce the same margin. Instead, the cost is divided by one minus the target margin.
For example, a $60 cost and a 40% target margin require a $100 selling price. Adding 40% to $60 would produce $84, but that price has only a 28.57% margin.
When percentage selling fees are included, the calculator adjusts the available share of revenue before solving for the required price. When a planned discount is also included, it calculates the higher list price that should produce the required discounted selling price.
Gross profit and estimated profit after entered costs
Gross profit normally compares sales with the direct cost of the item. The calculator also shows an estimated result after the additional costs and fees you enter. This second figure can be more useful for preliminary pricing, but it is not automatically the same as accounting net profit.
This calculator does not automatically include tax, advertising, returns, refunds, rent, insurance, payroll, subscriptions or general overhead. Include relevant per-sale amounts in the available cost fields or review them separately before making a final pricing decision.
Useful Pricing Examples
Online product with marketplace fees
Suppose a product costs $24, packaging costs $1.50, shipping costs $4, and the selling platform deducts 8% plus a $0.30 transaction fee. Enter each amount separately to see how much of the selling price remains after those entered costs.
Freelance or service pricing
For a service, the base cost can represent the value of the work time used to complete the job. Additional fields can represent software, subcontracting or delivery costs. The result can then be used as a starting point for a quote.
Planning a promotional discount
A 20% discount does more than reduce profit by 20%. It reduces revenue while many costs remain unchanged. Discount Planner works backwards to calculate a list price that can still produce the selected target margin after the discount and entered fees.
