Margin
Margin is profit as a percentage of the selling price.
(margin)Cost
Both help you set a selling price, but they measure different things.
Margin is profit as a percentage of the selling price.
Markup is profit as a percentage of the cost.
Selling price = cost ÷ (1 − margin ÷ 100), or cost × (1 + markup ÷ 100). Tax, fees and discounts are not included.
Quick answers to common questions.
The percentage of the selling price remaining as profit after deducting your cost. With a cost of 100 and a 35% margin, your selling price is 153.85.
The percentage added to your cost. With a cost of 100 and a 35% markup, the selling price is 135.
Consider your full costs, overheads and the profit you need, alongside what your customers will pay. This calculator models your figures; it does not recommend a target.
For positive profit, cost is smaller than selling price. The same profit is therefore a larger percentage of cost than of selling price.
Yes. The calculation is the same in every currency. Use the same currency for your cost and results. Amounts are displayed to two decimal places; no exchange-rate conversion is performed.