Profit Margin Calculator
Work out margin and markup, or the selling price you need to hit a target margin.
40.00
Profit
40.0%
Margin
66.7%
Markup
Formulas
- Profit = price − cost
- Margin = profit ÷ price × 100
- Markup = profit ÷ cost × 100
- Price for a target margin = cost ÷ (1 − margin ÷ 100)
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product that costs $60 and sells for $100 has a 40% margin and a 66.7% markup.
How do I calculate the price for a target margin?
Price = cost ÷ (1 − margin). For a 40% margin on a $60 cost: 60 ÷ 0.6 = $100. Choose "Price for a target margin" to work it out.
Should I include GST?
In Australia, work out margins on prices excluding GST if you are GST registered, because the GST you collect is passed on to the ATO and is not profit.
Is my data stored?
No. Calculations happen in your browser.
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