The Margin and Markup Calculator clarifies the difference between margin (profit as a share of revenue) and markup (profit as a share of cost). Choose to compute results from cost and selling price, from a target margin, or from a target markup — useful for retail merchandising, wholesale pricing, and service quoting.
How to Use Margin and Markup Calculator
- Choose a mode: from cost & price, from cost & target margin, or from cost & target markup.
- Enter the cost and the additional required field.
- Review the selling price, profit amount, margin, and markup.
Formula & Theory - Margin and Markup Calculator
profit = price - cost
margin = profit / price
markup = profit / cost
price_from_margin = cost / (1 - margin)
price_from_markup = cost × (1 + markup)
Use Cases for Margin and Markup Calculator
- Set retail prices that meet a target margin.
- Translate a vendor markup into a customer-facing margin.
- Quote service prices that cover labor and overhead.
- Audit profitability across SKUs or projects.