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Business · Free tool

Margin & Markup Calculator

Set a selling price from your target margin or markup. Or enter a selling price to see your profit, including the effect of a discount.

1. Enter your numbers

The target sets the price before discount. A discount then reduces your achieved margin.

2. Your pricing breakdown

Enter your numbers to see the selling price and what you keep after unit cost.

Uses your chosen currency as a label; no currency conversion. Excludes taxes, fees and overhead unless included in your cost.

✓ Calculations stay in your browser. No account or upload needed.

Margin and markup answer different questions.

Gross margin

Profit ÷ selling price × 100. If an item costs 75 and sells for 100, profit is 25 and gross margin is 25%.

Markup

Profit ÷ cost × 100. For the same item, markup is 25 ÷ 75 × 100, or 33.33%. A 25% markup is not a 25% margin.

A discount changes profit

A 10% discount reduces that 100 price to 90. With cost still at 75, profit falls to 15 and achieved margin becomes 16.67%.

Which formulas and rounding rules are used?

Target-margin price = cost ÷ (1 − margin ÷ 100). Markup price = cost × (1 + markup ÷ 100). Target prices round up to the next cent to meet the target before discount. Discounted prices and profit round to two decimal places. Achieved percentages use those rounded amounts.

Why can’t I enter a 100% target margin?

With a positive cost, a 100% margin would require an unbounded selling price. A zero selling price has an undefined margin, and zero cost has an undefined markup; these appear as N/A. Below-cost sales show a negative gross profit.

Is this my final business profit?

No. This is a per-unit gross calculation from the cost you provide. Include relevant unit costs, and separately account for overhead, payment fees, tax and other expenses. For further planning, explore the pricing strategy prompt.