How it works
Work out profit, margin and markup from cost and price — or the selling price you need for a target margin or markup. Optional fees and shipping included.
Choose a mode: cost + selling price gives profit, margin and markup; cost + target margin (or target markup) gives the required selling price; the convert mode changes margin into markup or back. Optional transaction fees, shipping and other per-unit costs are added to the unit cost to form the effective cost used in every calculation. Margin, markup and price stay consistent because they come from the same cost model.
Formula
Profit = price − effective cost · Margin % = profit ÷ price × 100 · Markup % = profit ÷ effective cost × 100 · Required price (margin) = cost ÷ (1 − margin ÷ 100) · Required price (markup) = cost × (1 + markup ÷ 100).
cost- Unit cost plus optional fees, shipping and other costs (currency)
price- Selling price per unit (currency)
m- Profit margin as a percentage of the selling price (%)
k- Markup as a percentage of the cost (%)
Examples
- Cost 600, price 1,000Mode cost + price · cost 600 · price 1,000Profit 400 · margin 40 % · markup 66.67 %
- Cost 600, target margin 40 %Mode target margin · cost 600 · margin 40 %Required price 1,000 · profit 400 · markup 66.67 %
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides profit by the cost. With cost 600 and price 1,000 the margin is 40 % but the markup is 66.67 % — they are never the same number.
How do fees change the result?
Fees, shipping and other unit costs are added to the cost before margin and markup are calculated, so they lower both. The effective cost is shown whenever it differs from the base cost.
Can margin be negative?
Yes. If the selling price is below the effective cost, the profit and margin are negative — useful for spotting loss-making prices.
Does this include VAT or sales tax?
No. Tax has its own calculators; keep prices and costs consistently net or gross and the margin stays correct either way.
Why is markup larger than margin?
Because markup is measured against the smaller base (cost). The gap widens as the margin grows.
How to read the result
Profit is the money left per unit. Margin tells you what share of the selling price it represents; markup tells you how much you added on top of the cost. Use margin for pricing decisions and markup when suppliers quote cost-based uplifts.
Limitations
Assumes a single product and per-unit values. It does not model volume discounts, fixed overheads, taxes or currency conversion.
Source: Standard margin and markup identities; no country-specific tax rules embedded.