Profit Margin Markup Calculator

Profit Margin & Markup Calculator

Calculate profit, selling price, profit margin and markup percentage in seconds.

Cost price The amount you pay to produce or buy the item.

Selling price The amount the customer pays.

Target profit margin (%) Enter a percentage below 100%.

Target markup (%) Markup is calculated as a percentage of cost.

Currency symbol $ — US Dollar £ — British Pound € — Euro TSh — Tanzanian Shilling R — South African Rand ₹ — Indian Rupee ₦ — Nigerian Naira KSh — Kenyan Shilling No currency symbol

Your Results

Profit Margin vs Markup

Profit margin measures profit as a percentage of the selling price. Markup measures profit as a percentage of the cost price.

Measure	Formula	Example
Profit	Selling price − Cost	100 − 80 = 20
Profit margin	Profit ÷ Selling price × 100	20 ÷ 100 × 100 = 20%
Markup	Profit ÷ Cost × 100	20 ÷ 80 × 100 = 25%

Example values use the same currency. The calculation excludes other expenses, taxes and fees.

Margin and Markup Conversion Chart

Compare common profit margin and markup percentages.

Profit Margin	Equivalent Markup
10%	11.11%
15%	17.65%
20%	25.00%
25%	33.33%
30%	42.86%
35%	53.85%
40%	66.67%
45%	81.82%
50%	100.00%
60%	150.00%
70%	233.33%
75%	300.00%
80%	400.00%

Profit Margin and Markup Formulas

1. How to calculate profit margin

Profit = Selling Price − Cost Price Profit Margin (%) = (Profit ÷ Selling Price) × 100

2. How to calculate markup

Markup (%) = (Profit ÷ Cost Price) × 100

3. Selling price from a target margin

Selling Price = Cost Price ÷ (1 − Margin ÷ 100)

For a cost of 80 and a target margin of 20%, the required selling price is 100.

4. Selling price from a target markup

Selling Price = Cost Price × (1 + Markup ÷ 100)

For a cost of 80 and a 25% markup, the selling price is 100.

5. Convert margin to markup

Markup (%) = Margin ÷ (100 − Margin) × 100

6. Convert markup to margin

Margin (%) = Markup ÷ (100 + Markup) × 100

Profit Margin Formula in Excel

Suppose cell A2 contains the cost price and cell B2 contains the selling price.

Profit: =B2-A2 Profit margin: =IF(B2=0,"",(B2-A2)/B2) Markup: =IF(A2=0,"",(B2-A2)/A2)

Format the margin and markup cells as percentages in Excel. The formulas return decimal values, which Excel displays as percentages when percentage formatting is applied.

Frequently Asked Questions

What is the difference between margin and markup?

Margin is profit divided by the selling price, while markup is profit divided by the cost price. They measure profit using different reference amounts.

Is a 20% margin the same as a 20% markup?

No. A 20% margin corresponds to a 25% markup. A 20% markup corresponds to a 16.67% margin.

How do I calculate a 30% profit margin?

Divide the cost by 0.70. If an item costs 70, a selling price of 100 gives a profit of 30 and a profit margin of 30%.

Can profit margin be negative?

Yes. If the selling price is below the cost price, the result is a loss and the margin is negative, provided the selling price is greater than zero.

Can markup exceed 100%?

Yes. A markup above 100% means the profit is greater than the cost price. A 150% markup means profit is 1.5 times the cost.

Does profit margin include all business expenses?

The calculator uses the cost figure you enter. If that figure includes only the purchase or production cost, the result is not net profit margin. Include relevant expenses in your cost figure if you want to assess profitability after those expenses.