Free calculator
Margin and markup calculator
Work in unit pricing for one product: cost and selling price (revenue) with profit margin % (profit ÷ price) and markup % (profit ÷ cost). Use a target margin, a target markup, or type cost + price to audit the pair. This is not brokerage or forex “margin” (leverage)—see FAQ.
When to use this calculator
Fast list-price and unit-economics checks before you lock a SKU row in Sheets or Excel.
- Set a target margin % on cost to read the selling price and the implied markup in one pass.
- Start from a markup on cost (common in wholesale) and read the margin on revenue as a second line.
- Type observed cost and price to audit margin and markup from a single pair of numbers.
- Use the percentage or ROI tools when the question is not a single cost/price line—ROI is about return on a spend over time, not % of a ticket for one unit.
We keep a retail/wholesale model with one unit cost and one selling price (revenue per unit) per mode.
Definitions on this page
Profit = selling price − cost (same currency). Margin % = profit ÷ selling price × 100—sometimes called the gross margin on the ticket when the cost is your only input for cost of goods. Markup % = profit ÷ cost × 100—a % of the buy rather than a % of the sell.
Convert between margin and markup (same line)
If you work in decimal form (not percent points), m = u / (1 + u) and u = m / (1 − m), with m the margin on revenue and u the markup on cost (when the denominators are not zero and m < 1 for a finite list price on positive cost).
What this is not
This is not leverage or buying power in trading—those “margins” are a different security concept. It is also not a full contribution or operating margin: we do not allocate SGA, fulfillment, or taxes in v1 if you have more than one line of cost to carry.
Name your cost line the same way you would in a small P and L for the SKU you are working on, then use the results as illustration only. To compare an outcome to amount spent in a time story, use the ROI calculator; it answers a different question from margin on a list price. For generic percent of and change work, use the percentage calculator.
Google Sheets & Excel
Let A2 = cost and B2 = selling price (revenue) for the two-number checks. For list price from a target margin m in C2 (as a decimal, e.g. 0.25 for 25%), use =A2/(1-C2). English function names; see FAQ for other language packs.
=(B2-A2)/B2Format as Percent or multiply by 100 if you prefer a numeric decimal in the cell.
=(B2-A2)/A2Requires A2 ≠ 0; for A2 = 0 the markup definition used here is not a finite number.
=A2/(1-C2)C2 is the target margin as a decimal (0.2 = 20%). Solves the same line as the “cost + target margin” mode when 0 ≤ C2 < 1 and A2 > 0.
Frequently asked questions
What is the difference between margin and markup?
Margin on this page is the % of the selling price that is profit ((price − cost) ÷ price). Markup is the % of the cost you add ((price − cost) ÷ cost). They are not interchangeable; your % depends on which denominator you mean.
What are the formulas for margin, markup, and list price from a target margin?
With profit = price − cost: margin % = profit / price × 100, markup % = profit / cost × 100. If cost > 0 and you want margin m% of price, the selling price is price = cost ÷ (1 − m/100) (needs m < 100).
How do I convert a markup to a margin (or the reverse)?
Using decimal form M = (price − cost) / price and U = (price − cost) / cost you can write M = U / (1+U) and U = M / (1−M) (when the denominators are not zero and M < 1 for a finite price from cost).
Is this the “margin” from a brokerage or stock/forex site?
No. Equities / FX pages often use “margin” to mean collateral and leverage—a different concept. This page is the % of a selling price (or % of a cost) for a unit in a pricing story, not a trading margin call.
Is this gross margin, net margin, or contribution margin?
We use one cost row and one selling price to mirror a gross style margin on a unit. A contribution or operating margin can include other variable or fixed costs; build those lines in a model or sheet if you need them for your policy.
How do I do this in Google Sheets or Excel?
See the copy cards: with A2 = cost and B2 = price, margin is =(B2-A2)/B2, markup is =(B2-A2)/A2. In non-English Excel, find the same ratio in your language pack. List from target margin m in C2 as a decimal: =A2/(1-C2) (when 0 ≤ C2 < 1 and A2>0).
Why is my target margin rejected at 100% (or more)?
With a strictly positive unit cost and a selling price of (price − cost) / price = 100% you would need a infinite price on this definition; at >100% the implied selling price is not positive on a one-line model. In practice, revisit the target or the fully loaded cost in a bigger sheet.
What if my cost is zero in “cost + selling price” mode?
Then profit = price and the margin % of selling price is 100%; markup as (price − 0) / 0 is not a finite number, so this page shows em dash for that line.
Can I get a negative margin or markup?
Yes: if you type a selling price below cost, you get loss; margin and markup are negative the same way as a simple ratio in a cell. “Cost + target margin” and “cost + markup” are meant for a list price at or above zero; use “cost + selling price” to study sub-cost pricing on purpose.
When should I use the ROI calculator instead?
Use the ROI calculator for (returned − invested) ÷ invested and optional CAGR over a horizon—not for % of a ticket from a unit price and unit cost the way this page does it.
I see “coefficient” in French retail—how does that map here?
In some FR and BE table contexts a “coefficient” multiplies cost to get selling price; its relationship to a % margin on revenue is not the same label as our formulas above, but the A2/B2 math in the spreadsheet section still matches a revenue % and a markup % when you type the right pair in A2 and B2.
Is this business, tax, or pricing advice?
No. It is a free educational calculator; illustration for arithmetic on the numbers you enter—not a substitute for a licensed adviser when a revenue or tax decision is on the line.