How to use this tool
- Choose Cost + price, Target markup or Target margin.
- Enter the unit cost and the price or percentage for the selected mode. Select a currency for display.
- Review selling price, profit, markup and margin together. Recheck the cost if your purchasing or fulfilment expenses change.
Example: a cost of 100 and a selling price of 125
Profit is 125 − 100 = 25. Markup is 25 ÷ 100 × 100 = 25%. Margin is 25 ÷ 125 × 100 = 20%. A 25% markup therefore produces a 20% margin in this example. To target a 25% margin on a cost of 100, the unrounded selling price is 100 ÷ (1 − 0.25) = 133.333… .
| Measure | Formula | Example result |
|---|---|---|
| Profit | Price − cost | 25 |
| Markup | Profit ÷ cost × 100 | 25% |
| Margin | Profit ÷ price × 100 | 20% |
What to check before you export
- These are unit-level gross profit calculations. Add relevant costs yourself; overheads, returns, fees and taxes are not automatically included.
- A positive cost cannot produce a finite selling price at a target margin of 100%. Use a target below 100%.
- Currency selection changes display formatting, not exchange rates. Rounding can slightly change the percentage achieved by a final selling price.
Frequently asked questions
Is 30% markup the same as 30% margin?
No. Markup divides profit by cost; margin divides profit by selling price. With positive cost and price, the markup percentage is larger than the margin percentage for the same profit.
How do I calculate price from target margin?
Divide cost by one minus the margin as a decimal. For a 20% target margin, divide cost by 0.80.
Does this calculate net profit?
No. It calculates the difference between the cost and price you enter. Include all relevant costs if you want the result to reflect them.