Profit Margin and Markup Calculator
See how much you make on each sale and what price to charge.
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| Profit margin | 40% |
| Markup | 66.67% |
| Profit per unit | 40 |
Quick answer: To calculate profit margin, enter your cost and selling price: margin = profit ÷ price and markup = profit ÷ cost. To set a price, choose I want to find the price, then enter the cost and your target margin or markup: price = cost ÷ (1 − margin).
How to do it in 3 steps
- 1Pick a mode.
- 2Enter cost and price, or your target percentage.
- 3See margin, markup and profit.
Why use Pronto Arquivo
Margin and markup together
The difference that trips up so many people, side by side.
Pricing
A suggested price from your target margin or markup.
Math shown
So you can check it and learn it.
For any business
Retail, ecommerce, restaurants or services.
Guides
Margin vs. markup
Cost $60 and price $100: a 40% margin (40 ÷ 100) and a 66.7% markup (40 ÷ 60). To get a 40% margin, adding 40% to the cost isn’t enough.
Include every cost
Add shipping, packaging, sales tax you can’t pass on, and card or marketplace fees to the cost.
Frequently asked questions
How do I calculate profit margin?
(Price − cost) ÷ price × 100.
How do I calculate markup?
(Price − cost) ÷ cost × 100.
What’s the difference between margin and markup?
Margin is based on the selling price; markup is based on the cost.
How do I find the selling price from a margin?
Price = cost ÷ (1 − margin). With a $60 cost and a 40% margin: 60 ÷ 0.6 = $100.
