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.
Choose from eight currencies. Currency selection changes labels and display rounding only, with no exchange-rate conversion. JPY displays whole amounts.