Profit Margin Calculator — Margin, Markup & Selling Price
Calculate profit margin, markup, and selling price from any two numbers — including reverse pricing from a target margin and optional tax or VAT handling. Free, no signup, all client-side.
Price with confidence: start from cost and markup to get a selling price, or convert markup to margin and back with the exact formulas. No signup, nothing leaves your browser.
No uploads. Everything runs locally in your browser.
A markup calculator starts from what you paid and adds your profit to reach a price; a margin calculator works backwards from the price you charge. This tool does both: enter a cost and markup for a selling price, gross profit, and equivalent margin — or use the two-way converter to translate between markup and margin with the exact formulas. Confusing the two is one of the most expensive pricing mistakes around: a 50% markup is only a 33.33% margin. Everything runs in your browser; nothing is uploaded.
Turn a unit cost and a markup percentage into the price you should charge.
Selling price = cost × (1 + markup ÷ 100). Enter a target margin instead to solve from the margin you want. Quick presets:
Worked example: cost $80, price $120 → $40 profit → 50% markup but only 33.33% margin.
A 50% markup means the profit is 50% of the cost — equal to a 33.33% margin on the $120.00 price.
Both numbers express the same profit, but against different bases. Markup is profit ÷ cost, so it answers “how much did I add to what I paid?” Marginis profit ÷ price, so it answers “how much of each sales dollar do I keep?” Because the price is always larger than the cost, the margin percentage is always smaller than the markup percentage for the same sale. That is why a 50% markup equals a 33.33% margin — and why quoting the wrong number can quietly erase your profit.
Calculations are estimates for pricing decisions and run entirely in your browser. They do not include marketplace fees, shipping, or payment processing — check those separately before you set a final price.
Turn a supplier cost into a listing price with a known markup, then check the margin it produces before fees eat into it.
Food cost is commonly marked up 200–300% to cover labor, rent, and waste — this cost-plus pricing calculator keeps that rule consistent across the menu.
Compare suppliers at a glance: enter each landed cost with your standard markup and see the shelf price and margin side by side.
Use the converter to translate a client's expected margin into the markup your rate card should quote — the two numbers are never the same.
Markup and margin are not the same number, even for the same profit. The table shows the equivalent margin for common markup percentages, calculated with the same conversion formula the converter uses above.
| Markup | Equivalent margin | Example on a $100 cost |
|---|---|---|
| 10% | 9.09% | Price $110.00 → $10.00 profit ÷ $110.00 price = 9.09% |
| 20% | 16.67% | Price $120.00 → $20.00 profit ÷ $120.00 price = 16.67% |
| 25% | 20% | Price $125.00 → $25.00 profit ÷ $125.00 price = 20% |
| 33.3% | 24.98% | Price $133.30 → $33.30 profit ÷ $133.30 price = 24.98% |
| 50% | 33.33% | Price $150.00 → $50.00 profit ÷ $150.00 price = 33.33% |
| 75% | 42.86% | Price $175.00 → $75.00 profit ÷ $175.00 price = 42.86% |
| 100% | 50% | Price $200.00 → $100.00 profit ÷ $200.00 price = 50% |
The classic example: on an $80 cost, a 50% markup gives a $120 price and a 33.33% margin — same $40 profit, different base.
| Industry | Typical markup | Why the range is what it is |
|---|---|---|
| Grocery & staples | 5–25% | Very high volume, so each item carries a thin markup. |
| Restaurants (food cost) | 200–300% | The markup on ingredient cost has to cover labor, rent, and waste. |
| Software & digital products | 100%+ | Delivery costs are near zero, so markups are quoted much higher. |
Typical ranges only — they vary by product, channel, and season. A markup that seems high can still produce a thin net margin once fees and overhead are paid.
Markup % = (selling price − cost) ÷ cost × 100. If an item costs $80 and you sell it for $120, the markup is ($120 − $80) ÷ $80 × 100 = 50%. Markup measures profit against the cost you paid, not against the price the customer pays.
It depends on the business and how much overhead the markup has to cover. Grocery items often carry 5–25% markups, restaurant food is frequently priced at 200–300% of ingredient cost, and software or digital products commonly run 100% or more. Treat these as typical guides, not guarantees — what matters is that the markup covers your full costs and still sells.
No — that is the most common pricing mix-up. A 50% markup on an $80 cost gives a $120 selling price and only a 33.33% margin. To hit a 50% margin at that cost you would need a $160 price, which is a 100% markup. The same $40 of profit looks smaller as a margin because margin is measured against the larger number, the selling price.
Use margin = markup ÷ (100 + markup) × 100. A 50% markup converts to 50 ÷ 150 × 100 = 33.33% margin. To go the other way, markup = margin ÷ (100 − margin) × 100 — and a margin of 100% or more has no finite markup, because the cost would have to be zero or less.
Cost-plus pricing sets the selling price as unit cost plus a fixed markup: price = cost × (1 + markup ÷ 100). It is simple, and every sale covers the unit cost plus the intended profit — but it ignores what customers are willing to pay and what competitors charge. It works best when your costs are stable and the market range for your product is already clear.