Profit Margin and Markup Calculator
Margin vs markup from cost and price, or the price for a target margin.
Use via API
Profit, margin (profit ÷ price) and markup (profit ÷ cost) from cost and price, or the selling price for a target margin or markup. Send JSON, get JSON back.
POST https://pithlab.com/api/v1/tools/profit-margin-calculator
curl https://pithlab.com/api/v1/tools/profit-margin-calculator \
-H "Authorization: Bearer $PITHLAB_KEY" \
-H "Content-Type: application/json" \
-d '{"mode":"costPrice","cost":60,"value":100}'About the Profit Margin Calculator
Work out profit, margin and markup from cost and selling price, or find the price you need to charge to hit a target margin or markup.
How to use the Profit Margin Calculator
- Choose what you know: cost and price, cost and a target margin, or cost and a target markup.
- Enter the cost and the second value.
- Read the profit, margin, markup and selling price, which update as you type.
Examples
Input
Cost 60, price 100
Output
Cost 60.00, price 100.00: profit 40.00, margin 40%, markup 66.67%
Input
Cost 30, target margin 25%
Output
Cost 30.00, price 40.00: profit 10.00, margin 25%, markup 33.33%
Frequently asked questions
What is the difference between margin and markup?
Both use the same profit, divided by different things. Margin is profit as a share of the selling price; markup is profit as a share of the cost. Buying at 60 and selling at 100 is a 40% margin but a 66.67% markup.
How do I price for a target margin?
Divide the cost by 1 minus the margin. For a 25% margin on a cost of 30: 30 ÷ 0.75 = 40. Adding 25% to the cost (37.50) would only give a 20% margin.
Why can't a margin reach 100%?
A 100% margin would mean the cost is zero. For any real cost, the price would have to be infinite, so margins are always below 100%. Markups have no upper limit.