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Profit Margin & Markup Calculator

Work out your margin and markup from cost and price — or flip it around and find the price you need to charge for a target margin or markup.

Cost per unit

What it costs you to make or buy one unit.

Margin vs. markup, in one line: margin is profit as a % of your selling price; markup is profit as a % of your cost. The same dollar profit always gives a lower margin % than markup % — mixing the two up is the most common pricing mistake.

Margin ↔ markup conversion table

Converting between margin and markup in your head is where most pricing mistakes happen — they’re never the same number. Quick reference for common round percentages:

Margin	Markup
5%	5.3%
10%	11.1%
15%	17.6%
20%	25.0%
25%	33.3%
30%	42.9%
33.3%	50.0%
35%	53.8%
40%	66.7%
45%	81.8%
50%	100.0%
55%	122.2%
60%	150.0%
65%	185.7%
70%	233.3%
75%	300.0%
80%	400.0%

Need an exact number instead of a round one? Use the “I know cost + target margin” or “I know cost + target markup” tab above — it’ll give you the precise conversion for any percentage, not just these common ones.

Margin and markup are not the same thing — and mixing them up costs real money

This is the single most common pricing mistake small businesses make: adding a “30% markup” to cost and assuming that means a 30% profit margin. It doesn't. If something costs you $70 and you mark it up 30% to $91, your margin isn't 30% — it's about 23%, because margin is calculated against the selling price, not the cost. The gap between the two numbers grows the higher your intended margin gets, which is exactly when getting it wrong hurts the most.

Quick way to keep them straight: markup asks “how much am I adding on top of cost?” Margin asks “how much of the final price is actually profit?” Same transaction, two different questions, two different numbers.

What counts as “cost” is easy to get wrong too

If you're only counting the direct cost of the product or materials, and leaving out shipping, payment processing fees, or your own packaging time, your margin looks healthier on paper than it actually is. A margin calculation is only as honest as the cost figure you put into it.

Frequently asked questions

How do I convert a margin percentage to a markup percentage?

Markup % = Margin % ÷ (100 − Margin %) × 100. For example, a 25% margin equals a 33.3% markup, and a 40% margin equals a 66.7% markup — markup is always the larger number once you’re above 0%. Use the table above for common percentages, or the “I know cost + target margin” tab for an exact conversion at any percentage.

How do I convert a markup percentage to a margin percentage?

Margin % = Markup % ÷ (100 + Markup %) × 100. A 50% markup equals a 33.3% margin, and a 100% markup (doubling your cost) equals a 50% margin — margin is always the smaller number. Use the “I know cost + target markup” tab for an exact figure.

What’s a good profit margin?

It depends heavily on the industry — retail and grocery often run on thin margins (single digits to ~20%), while services and software can run 50%+. There’s no universal “good” number; what matters is whether your margin covers your real costs (including the easy-to-forget ones like shipping and payment processing fees) and leaves enough to reinvest or take as profit.

Why is my margin always a smaller number than my markup?

Because they’re measured against different bases — markup is profit as a percentage of cost, and margin is profit as a percentage of the (larger) selling price. The same dollar amount of profit is always a smaller percentage of a bigger number, so margin < markup for any profitable price.

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