Four calculation directions
Move from cost and price to profit, from cost to selling price, or from price and target margin back to a cost ceiling.
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Business pricing · Free
Profit Margin & Markup Calculator
Turn costs into confident prices (or inspect an existing price) without confusing margin with markup.
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Profit per unit
$30.00
$80.00 selling price · 20 units
Selling price
$80.00
Unit cost
$50.00
Unit profit
$30.00
Batch revenue
$1,600.00
Batch cost
$1,000.00
Batch profit
$600.00
All batch overhead is allocated across the entered quantity.
Revenue allocation per unit37.5% remains as profit
Margin
37.50%
Profit as a share
of selling price
of selling price
profit ÷ price × 100
Markup
60.00%
Profit as a share
of total cost
of total cost
profit ÷ cost × 100
Pricing matrix
Selling prices for common target margins
Based on the current $50.00 total unit cost.
| Target margin | Equivalent markup | Price / unit | Profit / unit | Batch profit |
|---|---|---|---|---|
| 10% | 11.11% | $55.56 | $5.56 | $111.11 |
| 20% | 25.00% | $62.50 | $12.50 | $250.00 |
| 30% | 42.86% | $71.43 | $21.43 | $428.57 |
| 40% | 66.67% | $83.33 | $33.33 | $666.67 |
| 50% | 100.00% | $100.00 | $50.00 | $1,000.00 |
| 60% | 150.00% | $125.00 | $75.00 | $1,500.00 |
| 70% | 233.33% | $166.67 | $116.67 | $2,333.33 |
Margin uses revenue
A 40% margin means 40 cents of each sales dollar remains after the costs entered here.
Markup uses cost
A 40% markup adds 40 cents for every dollar of cost, so it produces only a 28.57% margin.
Use pre-tax prices
Sales tax or VAT is usually handled separately. Enter the net selling price and the costs relevant to your decision.
This is a pricing estimate, not accounting, tax, or financial advice. Include every cost relevant to your business and confirm tax treatment locally. Gross-margin terminology follows the U.S. Small Business Administration glossary.
How it works
Answer the pricing question in either direction.
Build a realistic cost, choose the unknown value, and keep unit economics and batch totals visible together.
- 01
Choose the pricing question
Check an existing selling price, calculate a price for a target margin or markup, or find the maximum cost a price can support.
- 02
Build the total cost
Enter direct unit cost, other per-unit costs, batch overhead, and quantity so shared expenses are allocated clearly.
- 03
Compare the results
Review unit and batch profit, margin, markup, revenue allocation, and a table of prices at common target margins.
Practical pricing maths
More useful than a single percentage.
Custom cost allocation
Separate direct costs, extra unit costs, and batch overhead while seeing the exact total cost assigned to every unit.
Margin and markup together
See both percentages with their distinct denominators, formulas, and equivalent target pricing in one workspace.
Profit and pricing questions
Margin, markup, costs, and selling price.
What is the difference between margin and markup?+
Margin divides profit by selling price, while markup divides profit by cost. They are not interchangeable: a 50% markup produces a 33.33% margin.
How do I calculate profit margin?+
Subtract total cost from selling price to find profit, divide profit by selling price, and multiply by 100.
How do I set a price for a target margin?+
Divide total unit cost by one minus the target margin written as a decimal. A $60 cost at a 40% target margin requires a $100 selling price.
How do I calculate a selling price from markup?+
Multiply total unit cost by one plus the markup rate as a decimal. A $60 cost with 50% markup gives a $90 selling price.
Why must a target margin stay below 100%?+
At a 100% margin, cost would need to be zero for any finite selling price. The target-price formula therefore has no finite result at or above 100%.
Should I include overhead and labor?+
Include costs relevant to the decision. This calculator lets you enter labor, packaging, platform fees, or similar amounts as other unit costs and spread batch overhead across quantity.
Should prices include sales tax or VAT?+
Usually use prices before sales tax or VAT when comparing operating margin because indirect taxes may be collected for a tax authority. Treatment varies, so confirm the correct basis locally.
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