Loading Techie Utils…

Margin Calculator

Margin, markup, cost or price — give any two. Free, and runs entirely in your browser — nothing you enter is uploaded, stored or sent to a server.

About Margin Calculator

Margin and markup are the same profit measured against two different things, and confusing them is the most expensive arithmetic mistake in retail. Margin is profit as a share of the price. Markup is profit as a share of the cost. A 50% markup is a 33.3% margin.

Give any two of cost, price, margin and markup and the rest are worked out: a cost and a target margin give the price to charge, a price and a cost give both percentages, a price and a margin give the most you can pay for the goods.

Leave the fields you do not know empty. The result says which of them it solved for, so there is no doubt about what was given and what was derived.

Where it helps

  • Solves in every direction: give any two and it works out the rest.
  • Shows margin and markup side by side, which is how the confusion between them is cured.
  • Says which value it derived, so nothing is ambiguous.
  • Runs locally — pricing is commercially sensitive and it stays in the browser.

Limits

  • Per unit and single-product: it does not blend a catalogue.
  • A margin of 100% or more is impossible and is refused, because the price would have to be infinite.
  • It ignores tax, discounts, returns and payment fees, all of which eat the margin you calculated.
  • Cost means the cost of the goods; overheads belong in the profit calculator.

Frequently asked questions

What is the difference between margin and markup?

Margin divides the profit by the price; markup divides it by the cost. On a £22 cost sold at £40 that is 45% and 81.8% — the same £18 either way.

How do I price for a target margin?

Divide the cost by 1 minus the margin: a 40% margin on a £22 cost means £22 ÷ 0.6, which is £36.67. Give the cost and the margin here and it does it.

Why can I not have a 100% margin?

Because margin is a share of the price, and reaching 100% would mean the goods cost nothing. Markup has no such limit — a 900% markup is perfectly possible.

Related tools

More Calculators tools