Great Scott Labs

Margin & Markup Calculator

Profit margin and markup from cost and price, or the price for a target. It runs entirely in your browser, so the file never leaves your computer.

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The two numbers everybody mixes up

Margin and markup both measure profit and they are not the same number. Markup is profit as a percentage of what the item cost you. Margin is profit as a percentage of what you sold it for.

Buy at $80, sell at $100. That is $20 profit, a 25% markup and a 20% margin. Identical dollars, two different percentages — and quoting one when you meant the other is how a business ends up pricing below where it thought it was.

Both shown together, on purpose

Enter a cost and a price and you get the margin, the markup and the dollar profit side by side. Seeing them together is the fastest cure for the confusion, because the gap between the two numbers is right there.

It works backwards too: give it a cost and a target margin — or a target markup — and it tells you the price to charge.

Why margin can never reach 100%

Margin is profit divided by selling price, so hitting 100% would mean the item cost you nothing. It approaches 100% and never arrives, which is why a target margin of 100% or more gets flagged rather than producing a nonsense price.

Markup has no such ceiling. A 400% markup is an ordinary thing to say; a 400% margin is not a thing at all. That asymmetry is another reason the two get confused.

Questions

Common questions

What does this tool do?

It calculates profit margin and markup from a cost and selling price, and can also work the other way — giving you the selling price needed to hit a target margin or markup.

What's the difference between margin and markup?

Both measure profit, but against different bases. Markup is profit as a percentage of cost (profit divided by cost). Margin is profit as a percentage of the selling price (profit divided by price). A $20 profit on an $80 item is a 25% markup but a 20% margin — same dollars, different percentages. Margin is always the smaller of the two.

How do I find margin and markup from a price?

Use 'From cost & price' mode and enter both. It shows the margin, the markup, and the dollar profit side by side.

How do I find the price for a target margin or markup?

Use 'Price from margin' or 'Price from markup' mode, enter your cost and the target percentage, and it gives the selling price you need to charge.

Why can't margin be 100% or more?

Margin is profit as a share of the selling price, so it approaches but can never reach 100% (that would mean the cost is zero). If you enter 100% or more for a target margin, the tool flags it. Markup has no such limit.

Is it private?

Yes. Everything is calculated in your browser — no ads, nothing uploaded.

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