Margin and Markup Calculator Online
Margin and markup are different metrics. Markup is calculated from the cost price, while margin is calculated from the selling price. The calculator shows both values and lets you work backwards from a target profit level to find the right selling price.
Frequently asked questions
What is the difference between margin and markup?
Markup is an amount added to the cost price and is calculated from cost. For example, if you buy for $100 and sell for $150, the markup is 50%. Margin is the share of profit in the selling price: (150−100)/150 = 33.3%. Same profit amount, different percentages.
What is considered a normal margin?
It depends on the industry: retail — 10–30%, clothing and footwear — 40–100%, digital products and services — 60–90%, food service — 25–75%. It's important to consider not just margin but also turnover volume.
How do I find the minimum selling price?
Minimum price = cost price + all fixed costs per unit + minimum desired profit. Enter the cost and your target margin percentage — the calculator will automatically compute the selling price.
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