Margin Calculator

Profit margin, markup and pricing

Cost & Price
Marketplace, card or payment fees
Shipping, packaging, etc.
Profit margin
33.3%
Profit 20.00 · Markup 50.0%
Net sales60.00
Fees0.00
Total cost40.00
Profit20.00
Margin (profit ÷ sales)33.3%
Markup (profit ÷ cost)50.0%
Cost ratio (cost ÷ sales)66.7%
Markup to Margin Chart
MarkupMarginPrice ÷ cost
10%9.1%× 1.10
20%16.7%× 1.20
25%20.0%× 1.25
30%23.1%× 1.30
40%28.6%× 1.40
50%33.3%× 1.50
60%37.5%× 1.60
75%42.9%× 1.75
100%50.0%× 2.00
150%60.0%× 2.50
200%66.7%× 3.00

Adding 50% to cost (50% markup) gives a 33.3% margin; doubling the cost (100% markup) gives a 50% margin. Mixing them up is the most common pricing mistake.

Price for a Target Margin
Target marginPrice (cost 100)Profit
10%111.1111.11
20%125.0025.00
25%133.3333.33
30%142.8642.86
40%166.6766.67
50%200.00100.00
60%250.00150.00

Price = cost ÷ (1 − margin). With fees: price = cost ÷ (1 − margin − fee rate).

Formulas & Sources
📘 Investopedia — Profit margin
Last reviewed: 2026-10-19
FAQ
How do I calculate profit margin?
Margin = (price − cost) ÷ price × 100. Buy at 40 and sell at 60: profit 20, margin 33.3%.
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of cost. 40 → 60 is a 33.3% margin but a 50% markup.
What price gives a 30% margin?
Price = cost ÷ (1 − 0.30). With a cost of 40 you need to sell at 57.15 or more. Adding 30% to cost (52) only gives a 23% margin.
How do marketplace fees affect margin?
Enter the fee rate (e.g. marketplace + card fees). It is taken from the selling price before profit is calculated, so the required price rises.
Is a 50% markup the same as a 50% margin?
No. A 50% markup is a 33.3% margin. For a 50% margin you need a 100% markup — selling at twice the cost.

How to calculate margin and markup

Profit margin is the share of the selling price you keep as profit; markup is how much you add on top of cost. A product that costs 100 and sells for 130 has a 30% markup but only a 23.1% margin.

Use this calculator to find margin, markup and cost ratio from cost and price, or to find the selling price that delivers a target margin after marketplace fees and shipping.

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