Margin Calculator
Pick what you know, fill in two numbers and get profit, margin and markup, plus the price or cost you were looking for.
Margin and markup are easy to mix up, and getting them wrong can quietly cost you money. This page shows both side by side.
How it works
Profit is the price you sell at minus what it cost you. Margin is that profit as a share of the selling price. Markup is that same profit as a share of the cost.
They always describe the same profit, but the numbers differ. Say something costs $60 and you sell it for $100. The profit is $40. That is a 40% margin (40 out of 100) and a 66.67% markup (40 on top of 60).
The mix-up costs money. If you want a 30% margin and you just add 30% to your cost, you actually earn less: a $70 item marked up 30% sells for $91, and the profit of $21 is only a 23% margin. To earn a 30% margin on a $70 cost, the price must be $70 ÷ (1 − 0.30) = $100.
The fourth option works backward. If you know what you can sell something for, and the margin you need, it tells you the most you can pay for it. That is useful when buying stock to resell.
This is gross margin on one item. It does not include your fixed costs like rent, wages and ads, or fees on the sale. For marketplace fees, use the eBay fee calculator.
profit = price − cost
margin % = profit ÷ price × 100
markup % = profit ÷ cost × 100
price for a target margin = cost ÷ (1 − margin)
price for a target markup = cost × (1 + markup)Worked example: Margin versus markup
Cost $60, price $100: profit $40, margin 40%, markup 66.67%.
Cost $70 and you want a 30% margin: the price is $100. Cost $40 with a 50% markup: the price is $60, which is a 33.33% margin. Selling at $100 with a 25% margin target means you can pay at most $75.
Frequently asked questions
What is the difference between margin and markup?
Both come from the same profit. Margin divides it by the selling price. Markup divides it by the cost. Markup is always the bigger number, unless the profit is zero.
Can margin be over 100%?
No. Margin is a share of the price, so it cannot reach 100% unless the cost is zero. Markup can be over 100%. Doubling the cost is a 100% markup and a 50% margin.
What is a good profit margin?
It depends on the business. Shops and resellers often work on margins of 20% to 50%. Software can be much higher. Compare with others in your own field.
What if I sell at a loss?
The margin shows as a negative number. A $100 cost sold at $80 is a −25% margin.
Does this include taxes and fees?
No. Add selling fees and shipping into the cost to see your true margin, or use a calculator built for the platform you sell on.
Related tools
- eBay Fee CalculatorPick your eBay category and see the final value fee, your profit, margin and break-even price. Uses eBay’s own fee table. Free, private, no sign-up.
- Percentage CalculatorFind a percent of a number, what percent one number is of another, percent increase or decrease, and the original number. Each answer shows the working.
- Invoice GeneratorFill in your details, add the lines, and get a clean invoice with tax and discount worked out. Print it or save it as a PDF. Free, no sign-up, no watermark.
Content last reviewed 2026-10-13.