Free tools / Profit margin calculator
Profit margin and markup calculator
Turn cost and price into margin and markup, or start from the margin you want and get the price to charge.
Cost and price
Margin is profit divided by price; markup is profit divided by cost. A 50% markup on a $60 cost is a $90 price and a 33% margin. Quoting the wrong one is how businesses price themselves into a loss.
Result
See margin by product, customer and month from your real numbers.
Start free with EazeAccountsHow to use it
Start from cost and price to see the margin you are actually making, or start from the margin or markup you want and get the price to charge. Cost should include everything it takes to deliver one unit: materials, direct labour, payment fees, shipping.
Gross margin is the number investors and lenders quote. Net margin, after rent, salaries and everything else, comes from your income statement, not from a single product.
Margin versus markup
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A 50 percent markup is a 33 percent margin, and a 50 percent margin needs a 100 percent markup. Suppliers talk markup; accountants and investors talk margin. Mixing them up is one of the most common ways a small business prices below what it needs.
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