Margin Calculator
Margin is profit ÷ price; markup is profit ÷ cost. Mixing them up quietly destroys pricing strategy — this converts either direction.
Gross profit
$60.00
- Profit margin
- 40%
- Markup
- 66.67%
- Price needed for 40% margin at this cost
- $150.00
How the Margin Calculator works
The calculation follows the standard method used across the US — no shortcuts, no hidden assumptions. Here is exactly what happens behind the scenes:
Formula
margin = (rev−cost)/rev ; markup = (rev−cost)/cost
Frequently Asked Questions
30% margin is what markup?
42.86%. The divisor differs (price vs cost), so markup numbers always exceed margin numbers for profitable items.
Target margin pricing?
Price = cost ÷ (1 − target margin). Want 40% margin on $60 cost? Price at $100.
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