Margin calculator
Profit margin, markup and the right selling price, with tax and discount.
PrivateNo uploadsRuns in your browserFor break-even: how many items pay for these
Profit margin
35.38%
Markup 54.76%, profit ₹230 per item
- Cost
- ₹420
- Tag price
- ₹650
- You keep (no tax)
- ₹650
- Profit
- ₹230
- Sales for 30 items
- ₹19,500
- Profit on them
- ₹6,900
- Break-evenItems to sell to cover ₹4,500
- 20 items
Margin or markup, with your numbers
Margin 35.38% = profit ₹230 ÷ price ₹650
Measured against the price. Shops and accounts use this one.
Markup 54.76% = profit ₹230 ÷ cost ₹420
Measured against the cost. Handy for setting a price from the cost.
Price ladder
The price for each margin at a cost of ₹420. Tap a row to use it.
| Margin | Markup | Tag price | Profit |
|---|---|---|---|
| 11.1% | ₹466.67 | ₹46.67 | |
| 25% | ₹525 | ₹105 | |
| 42.9% | ₹600 | ₹180 | |
| 66.7% | ₹700 | ₹280 | |
| 100% | ₹840 | ₹420 | |
| 150% | ₹1,050 | ₹630 |
How it is calculated
- Profit: ₹650 − ₹420 = ₹230.
- Margin: ₹230 ÷ ₹650 = 35.38% of the price.
- Markup: ₹230 ÷ ₹420 = 54.76% on top of the cost.
Margin = (price − cost) ÷ price × 100
Markup = (price − cost) ÷ cost × 100
Price for a margin = cost ÷ (1 − margin ÷ 100)
Price here means what you keep: after any discount and without tax, because tax you collect is not yours. Break-even items = fixed costs ÷ profit per item, rounded up.
How to calculate profit margin
Pick what you know
Cost and price to see your margin, or cost and a target margin or markup to get the price, or price and margin to find the most you can pay.
Add tax and discount
Say whether the price has tax in it or tax goes on top, and add any discount. The margin is always worked out on what you keep.
Read the price ladder
The table shows the price for a 10% to 60% margin. Tap a row to use that margin. Copy the summary or download it as CSV.
Good to know
- To turn a margin into a markup: markup = margin ÷ (100 − margin) × 100. A 20% margin is a 25% markup; a 50% margin is a 100% markup.
- Adding 30% to the cost does not give a 30% margin. Use Price for a margin to get the right price.
- The currency follows your region. Change it with the Currency menu; it is kept in the page link.
- Every input is kept in the page link, so Copy link shares the exact calculation.
- Ctrl+C with nothing selected copies the summary. Everything is worked out on your device.
Where people use it
Price a new product
Enter your cost and the margin you want, and get the selling price to put on the tag.
Check what you really earn
Enter cost and price to see the profit, the margin and the markup side by side.
Buying stock for resale
Know your selling price? Find the most you can pay a supplier and still keep your margin.
Run a sale
Add a discount and see how much margin is left before you announce it.
Tax in the price
Include or add GST, VAT or sales tax. For a GST split, use the GST calculator.
GST calculatorBill the customer
Make a clean invoice with the final price.
GST invoice generator
Why this one
It clears up the margin and markup mix-up with both shown together, and works backwards to the most you can pay for stock.
- Margin, markup and profit from one set of numbers.
- A price ladder from 10 to 60 percent margin.
- Break-even items for your rent and wages.
- Any currency, set from your region.
What you can change
- Find my margin, price for a margin or most I can pay
- Tax rate, in the price or added on top
- Discount
- Quantity
- Fixed costs
People find this page by searching
- margin calculator
- profit margin calculator
- markup calculator
- selling price calculator
- margin vs markup
- how to calculate profit margin
- gross margin calculator
- price with margin calculator
- break even calculator
- retail price calculator
Cite this tool
- APA
sdev.in. (n.d.). Margin calculator [Web tool]. https://www.sdev.in/tools/margin-calculator
- MLA
"Margin calculator." sdev.in, https://www.sdev.in/tools/margin-calculator.
- Chicago
sdev.in. "Margin calculator." https://www.sdev.in/tools/margin-calculator.
- BibTeX
@misc{sdev-margin-calculator, title = {Margin calculator}, author = {{sdev.in}}, howpublished = {\url{https://www.sdev.in/tools/margin-calculator}}, note = {Web tool} }
Questions people ask
What is the difference between margin and markup?
Both use the same profit. Margin compares it with the selling price, markup compares it with the cost. Buy at 400 and sell at 500: the profit is 100, so the margin is 100 ÷ 500 = 20% and the markup is 100 ÷ 400 = 25%.
How do I find the selling price for a 30% margin?
Divide the cost by (1 minus the margin). For a cost of 400 and a 30% margin: 400 ÷ 0.7 = 571.43. Adding 30% to the cost (520) gives only a 23% margin, a common mistake.
Should tax be part of the margin?
No. GST, VAT or sales tax collected from the customer goes to the government, so the margin is worked out on the price without tax. Choose In the price or Added on top and the calculator takes the tax out first.
How does a discount change my margin?
The discount comes straight out of your profit. Selling at 500 with a cost of 400 gives a 20% margin; a 10% discount makes the price 450 and the margin falls to 11%. Add the discount here to see it before you offer it.
What is break-even?
The number of items you must sell so the profit on them pays your fixed costs, such as rent and wages. With 100 profit per item and 15,000 of fixed costs a month, you need to sell 150 items before you earn anything.
Can a margin be more than 100%?
No. A margin is a share of the price, so even an item that cost nothing has a 100% margin. Markup has no limit: buying at 100 and selling at 400 is a 300% markup but a 75% margin.