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Investment 5 uses Updated August 10, 2026

Margin Calculator

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Purchase price of the product
$
Desired margin percentage
%
Add VAT to the selling price
%

This margin calculator finds the profit margin, markup, and selling price from your cost and revenue. Enter the values above to work out your pricing.

Formulas

Profit = Price − Cost
Margin % = Profit ÷ Price × 100
Markup % = Profit ÷ Cost × 100

Example

Cost $60, price $100: profit $40, margin = 40%, markup = 66.7%.

Margin vs markup

Margin is profit as a share of the selling price; markup is profit as a share of the cost. They are easy to confuse but always differ.

Good to know

These results are estimates for educational purposes only and are not financial advice. Rates, fees, and terms vary by lender and situation — confirm figures with a licensed professional before making decisions. Last updated: August 2026.

Frequently Asked Questions

How do I calculate profit margin?

Subtract cost from price for profit, then divide profit by the price and multiply by 100.

What is the difference between margin and markup?

Margin is profit over price; markup is profit over cost. A 40% margin equals a 66.7% markup.

How do I set a price from a target margin?

Divide the cost by one minus the margin. For a 40% margin on a $60 cost, price = 60 / 0.6 = $100.

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