Profit Margin & Markup Calculator
VAT, sales tax, margin and markup
- Profit
- 40
- Margin
- 40%
- Markup
- 66.67%
(100 − 60) ÷ 100 × 100 = 40 · (100 − 60) ÷ 60 × 100 = 66.6667
Price for a target: Margin
60 ÷ (1 − 40 ÷ 100) = 100
100
Price for a target: Markup
60 × (1 + 50 ÷ 100) = 90
90
Formula: gross = net × (1 + rate ÷ 100) · Updated Oct 22, 2026
Enter what an item costs you and what you sell it for: you get the profit, the margin (profit ÷ price) and the markup (profit ÷ cost). Below, find the price for a target margin or markup.
How to use the Margin Calculator
- Type the cost and the selling price.
- Read the profit, margin and markup.
- Use the lower boxes to find the price for a target margin or markup.
Margin vs markup
Cost $60.00, price $100.00: the profit is $40.00, the margin is 40% of the price and the markup is 66.67% of the cost. Margin can never reach 100%; markup can be any size.
Price for a target margin
Price = cost ÷ (1 − margin ÷ 100). For a 40% margin on a $60.00 cost: $60.00 ÷ 0.6 = $100.00. Adding 40% to the cost ($84.00) only gives a 28.57% margin.
Margin and markup table
| Markup | Margin |
|---|---|
| 10% | 9.09% |
| 20% | 16.67% |
| 25% | 20% |
| 30% | 23.08% |
| 40% | 28.57% |
| 50% | 33.33% |
| 60% | 37.5% |
| 75% | 42.86% |
| 100% | 50% |
Frequently asked questions
How do I calculate profit margin?
Margin = (price − cost) ÷ price × 100.
Is a 50% markup a 50% margin?
No. A 50% markup gives a 33.33% margin.
More calculators
Results are rounded for display; the calculation itself uses full precision. Tax and price results are estimates — check the official rate for your case.