Margin & Markup Calculator
Example: Cost $60, Price $100: 40% margin, 66.7% markup
Calculate profit margin, markup, and selling prices. Margin is profit as a percentage of selling price, while markup is profit as a percentage of cost. Use this calculator to convert between them or find prices.
Profit margin
Cost + profit = selling price
Profit Margin
Profit ÷ Selling Price
Markup
Profit ÷ Cost
Profit
Selling Price
Calculated from margin or markup
Cost Multiplier
How We Calculate This
Margin = (Price - Cost) ÷ Price × 100. Markup = (Price - Cost) ÷ Cost × 100. Multiplier = Price ÷ Cost = 1 + (Markup ÷ 100).
Methodology last reviewed: April 2026. How SparkCalc works
Sources: U.S. SBA: Break-even point · U.S. Census Bureau: Quarterly Financial Report (QFR) · U.S. SBA: Calculate your startup costs
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit as a percentage of the selling price: Profit ÷ Price. Markup is profit as a percentage of cost: Profit ÷ Cost. A 50% markup results in a 33% margin.
How do I convert margin to markup?
Markup = Margin ÷ (1 - Margin). For example, 40% margin = 0.4 ÷ 0.6 = 66.7% markup.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). For example, 100% markup = 1 ÷ 2 = 50% margin.
What is a typical profit margin?
It varies by industry. Grocery stores: 2-3%. Restaurants: 3-9%. Retail: 25-50%. Software/SaaS: 70-90%. Know your industry benchmarks.
Related Calculators
You might also find these calculators helpful: Break-Even Calculator, and Discount Calculator.
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