This calculator finds profit, margin, or selling price for businesses deciding what to charge.
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Enter the item cost and selling price to calculate profit and margin. If you have a target margin, enter the cost and target percentage to find the required selling price.
Profit = selling price - cost. Margin percent = profit / selling price x 100. Selling price for a target margin = cost / (1 - target margin / 100).
An item costs $48 and sells for $80, producing $32 of profit and a 40% margin. To earn a 40% margin on a $60 cost, the selling price must be $100.
Margin divides profit by the selling price, while markup divides profit by cost. A $50 item sold for $75 has a 33.33% margin and a 50% markup.
Include every cost you want the price to recover, such as shipping, payment fees, labor, or allocated overhead. Leaving costs out makes the margin look kinder than reality.
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