Margin & Markup Calculator Free tool by Valcenra

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Margin and markup calculator

Margin is profit as a share of the price; markup is profit as a share of the cost. A $60 item sold for $100 has a 40% margin and a 66.7% markup. Enter any two numbers below to get the rest, including the price you need after card and marketplace fees.

$
What you pay for one unit (purchase or production cost)
$
Before sales tax or VAT
Fees, extra costs and quantity (optional)
%
Card processing (often 2.9%), marketplace or commission
$
Shipping, packaging, fixed transaction fee
Units sold, for total profit
Profit margin
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Markup
–
Selling price
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Cost per unit
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Gross profit per unit
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Convert markup and margin

%
%

Type in either box. Full table: markup to margin chart.

Price a whole product list

Paste one product per line, as name, cost or just the cost. Prices use the target margin, fees, extra costs and rounding above.

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Know which products and customers really make your margin

A margin calculator prices one item. Valcenra shows why your actual margin moved month to month: price, volume and product mix, reconciled to your books.

See price-volume-mix analysis

How to calculate margin and markup

You wantFormulaExample (cost $60, price $100)
Profit margin(Price − Cost) ÷ Price$40 ÷ $100 = 40%
Markup(Price − Cost) ÷ Cost$40 ÷ $60 = 66.7%
Price for a target marginCost ÷ (1 − Margin)$60 ÷ (1 − 0.40) = $100
Price for a markupCost × (1 + Markup)$60 × 1.667 = $100
Maximum cost for a marginPrice × (1 − Margin)$100 × 0.60 = $60
Margin from markupMarkup ÷ (1 + Markup)0.667 ÷ 1.667 = 40%
Markup from marginMargin ÷ (1 − Margin)0.40 ÷ 0.60 = 66.7%

The most common pricing mistake

Adding your target margin to cost gives a lower margin than you think. To earn a 30% margin on a $70 item, the price is $70 ÷ 0.70 = $100. Adding 30% to cost gives $91, which is only a 23.1% margin, so you'd lose $9 on every sale compared with your plan.

Include fees in your price

Card processors and marketplaces take a percentage of the price, not the cost. With a 2.9% card fee, a $100 sale leaves you $97.10, so a 40% margin before fees is 37.1% after them. To hit a margin after fees, use: Price = (Cost + other costs) ÷ (1 − Margin − Fee %). The calculator does this when you open "Fees, extra costs and quantity".

More detail: margin vs markup, explained with examples.

Questions

How do I calculate profit margin?

Profit margin = (selling price − cost) ÷ selling price × 100. An item that costs $60 and sells for $100 has a 40% margin.

How do I calculate markup?

Markup = (selling price − cost) ÷ cost × 100. An item that costs $60 and sells for $100 has a 66.7% markup.

What price gives me a 30% margin?

Price = cost ÷ (1 − 0.30). For a $70 cost, the price is $100. Adding 30% to cost ($91) gives only a 23.1% margin.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 50% markup is a 33.3% margin; a 100% markup is a 50% margin.

Should fees be included in margin?

For pricing decisions, yes. Card processing and marketplace fees are taken as a percentage of the price, so a 30% margin before a 3% fee is about 27% after it. The calculator shows both.

Can margin be more than 100%?

No. Margin is profit divided by price, so it can't reach 100% unless the cost is zero. Markup has no upper limit: selling a $10 item for $50 is a 400% markup and an 80% margin.

Last reviewed 27 September 2026.