Markup and Margin

Shows the profit on a cost and a selling price as two percentages: markup, which divides by the cost, and margin, which divides by the selling price. It can also set the price from a target markup or a target margin.

Margin is the share of the selling price that is profit. Markup is that same profit as a share of the cost, so the markup percentage is higher whenever the price is above the cost.

1. Choose cost and selling price, cost and markup, or cost and margin.
2. Enter the cost and the second number.
3. Read the profit, the markup, and the margin. A target returns the selling price.

Profit over cost, and profit over price

Profit = price − cost, after both amounts are rounded to the cent. Markup = profit ÷ cost. Margin = profit ÷ price. A target markup sets the price at cost × (1 + markup). A target margin sets the price at cost ÷ (1 − margin), then rounds that price to the cent.

Source. Profit is the selling price minus the cost, after both amounts are rounded to the cent. Markup is that profit divided by the cost. Margin is that profit divided by the selling price. A target markup sets the price at the cost times (1 + the markup). A target margin sets the price at the cost divided by (1 − the margin), and that price is then rounded to the cent. The percentages shown are figured again from the rounded price, and a displayed percentage is rounded to four decimal places. A margin of 100 percent or more has no finite price.

Updated November 1, 2026

A cost of $50.00 and a selling price of $80.00 leave a profit of $30.00. Markup is profit divided by cost: $30.00 / $50.00 = 60%. Margin is profit divided by the selling price: $30.00 / $80.00 = 37.5%. The same profit is a larger percentage of the cost than of the selling price.

• A 60% markup and a 37.5% margin can describe the same $30 profit.
• The selling price for a target is rounded to the cent, and the percentages are figured again from that price.
• A margin of 100% or more has no selling price.

Why are markup and margin different percentages?

They divide the same profit by different numbers. Markup divides by the cost. Margin divides by the selling price. On a $50 cost and an $80 price, the $30 profit is a 60% markup and a 37.5% margin.

How do I price for a target margin?

Choose cost and margin, then enter the cost and the margin you want. The price is the cost divided by (1 − margin). A 37.5% margin on a $50 cost is an $80 price.

Can the margin be 100%?

No finite price produces a 100% margin, because that would mean the cost's share of the price is zero. The page stops at 100% and above.