Margin Calculator

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).

Worked example

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.

Common questions

What is the difference between margin and markup?

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.

Should cost include overhead?

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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