Know your margin.
Enter cost and price to get profit, margin and markup — or set a target margin to get the price.
Price—
Profit—
Margin—
Markup—
How it works
Margin is profit as a share of the selling price: (price − cost) ÷ price. Markup is profit as a share of cost: (price − cost) ÷ cost. A 50% markup is only a 33.3% margin, which is why mixing them up erodes profit.
To hit a target margin, price = cost ÷ (1 − margin).
FAQ
What's the difference between margin and markup?
Margin divides profit by the selling price; markup divides it by the cost. The same sale always has a lower margin percentage than markup percentage.
Can margin be 100% or more?
No — that would need a cost of zero or less. Markup has no upper limit.