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Margin & Markup Calculator

Calculate profit margin percentage and markup percentage from cost and price.

About this tool

Understanding the difference between profit margin and markup is essential for anyone in sales, retail, or business management. While these two metrics often get confused, they measure profitability differently: margin tells you what percentage of each sale is profit relative to the selling price, while markup shows how much you've increased the cost to arrive at the selling price. This calculator makes it easy to compute both figures from your cost and selling price.

To use this tool, simply enter your product cost and the selling price, and the calculator instantly displays both your profit margin percentage and markup percentage. For example, if you buy an item for $50 and sell it for $75, the margin is 33.33% (meaning one-third of your revenue is profit) and the markup is 50% (meaning you've marked up the cost by half). The tool works for any currency or unit—whether you're pricing individual items, bulk orders, or services.

This calculator is invaluable for retail managers, e-commerce sellers, wholesalers, and small business owners who need to quickly evaluate pricing strategies and ensure healthy profit levels. By understanding both metrics, you can set prices that cover costs, reflect market conditions, and maintain the profit margins your business needs to thrive. Use this tool whenever you're reviewing prices, planning a sale, or analyzing whether a new product line will be profitable.

Frequently Asked Questions

Code Implementation

def margin_from_cost_price(cost: float, price: float) -> dict:
    """Calculate margin and markup from cost and selling price."""
    if price == 0:
        raise ValueError("Selling price cannot be zero")
    profit = price - cost
    margin = (profit / price) * 100
    markup = (profit / cost) * 100 if cost > 0 else float('inf')
    return {"profit": profit, "margin": margin, "markup": markup}

def price_from_cost_margin(cost: float, margin_pct: float) -> dict:
    """Calculate price from cost and desired margin percentage."""
    if margin_pct >= 100:
        raise ValueError("Margin must be less than 100%")
    price = cost / (1 - margin_pct / 100)
    profit = price - cost
    markup = (profit / cost) * 100 if cost > 0 else float('inf')
    return {"price": price, "profit": profit, "markup": markup}

def price_from_cost_markup(cost: float, markup_pct: float) -> dict:
    """Calculate price from cost and desired markup percentage."""
    profit = cost * (markup_pct / 100)
    price = cost + profit
    margin = (profit / price) * 100 if price > 0 else 0
    return {"price": price, "profit": profit, "margin": margin}

# Example
result = margin_from_cost_price(cost=50, price=80)
print(f"Margin: {result['margin']:.2f}%")
print(f"Markup: {result['markup']:.2f}%")
print(f"Profit: ${result['profit']:.2f}")

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