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
| Markup | Margin | Price ÷ 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 margin | Price (cost 100) | Profit |
|---|---|---|
| 10% | 111.11 | 11.11 |
| 20% | 125.00 | 25.00 |
| 25% | 133.33 | 33.33 |
| 30% | 142.86 | 42.86 |
| 40% | 166.67 | 66.67 |
| 50% | 200.00 | 100.00 |
| 60% | 250.00 | 150.00 |
Price = cost ÷ (1 − margin). With fees: price = cost ÷ (1 − margin − fee rate).
Formulas & Sources
- Margin = profit ÷ sales × 100 · markup = profit ÷ cost × 100 · cost ratio = cost ÷ sales × 100
- Fees are charged on the selling price
- Enter prices before sales tax / VAT
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.