Profit margin calculator with formula and markup
Enter selling price and costs to calculate profit, margin and markup, then see the price required for your target margin.
Profit margin formula
Margin and markup answer different questions. Use these formulas to keep the percentages clear:
- Profit
- selling price - total cost
- Profit margin
- profit ÷ selling price × 100
- Markup percentage
- profit ÷ total cost × 100
- Target price
- total cost ÷ (1 - target margin)
Calculation example
A R$100 sale with R$70 in total cost produces R$30 in profit. The margin is 30%, while markup is 42.9%. Simply adding 30% to cost does not create a 30% margin.
Read how to calculate profit margin and use the fixed cost calculator to allocate recurring expenses. how to calculate profit margin · fixed cost calculator.
FAQ
How do you calculate profit margin?
Subtract total cost from selling price, divide profit by selling price and multiply by 100.
Are margin and markup the same?
No. Margin divides profit by revenue, while markup compares profit or selling price with cost.
Which costs should be included?
Include direct cost, fees, taxes, commissions, packaging, subsidized shipping and a reasonable fixed-cost share.