2026 Profit Margin & Markup Calculator
Price with confidence. Enter your cost and selling price to see profit margin, markup, and profit — or solve for the price that hits your target margin. Built for invoices and quotes.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Your Pricing
Margin & Markup
* Standard accounting formulas: Profit Margin = (Price − Cost) ÷ Price; Markup = (Price − Cost) ÷ Cost. Verified against Investopedia's Profit Margin and Markup references. Margin and markup are different numbers — margin is based on price, markup on cost. Estimates only, not financial advice.
About the Margin & Markup Calculator
Margin vs. Markup
Margin is based on your selling price; markup is based on your cost. They are never the same number — know which one your business plans around.
Price for a Target Margin
Enter your unit cost and a target margin to get the exact price you must charge. Great for quoting jobs and setting invoice rates.
Plan Volume Too
A healthy margin still loses money below break-even. Our Break-Even Calculator shows the sales volume you need.
Cover Your Taxes
Remember self-employment and income tax on the profit. Our Self-Employment Tax Calculator estimates the hit.
How to Calculate Profit Margin & Markup
- Find your unit cost. Add every cost to make or deliver one unit — materials, labor, fulfillment, and payment fees.
- Set your price. Enter the amount you charge. The calculator shows profit per unit, margin, and markup at once.
- Read margin vs. markup. Margin = (Price − Cost) ÷ Price; Markup = (Price − Cost) ÷ Cost. They differ whenever margin is not 0% or 100%.
- Solve for a target margin. Enter your cost and desired margin to get the required price — no algebra needed.
- Project totals. Add units sold to see total revenue, cost, and profit for the period.
Profit Margin & Markup FAQs
Margin is profit as a percentage of the selling price; markup is profit as a percentage of the cost. A 50% markup is only a 33% margin. Confusing the two is a common pricing mistake that quietly erodes profit.
Profit Margin = (Selling Price − Cost) ÷ Selling Price. For example, a $50 price on a $30 cost is a $20 profit, which is a 40% margin ($20 ÷ $50).
To hit a 40% margin on a $30 cost, you need a price of about $50 — a markup of roughly 66.7% ($20 ÷ $30). Use the target-margin field to solve this automatically for any cost.
Before you send an invoice, confirm the price covers your cost and delivers the margin you need. Pair it with our Break-Even Calculator to make sure volume and price together clear your fixed costs.
Authoritative References
- Investopedia — Profit Margin — defines profit margin and its common variants used in this calculator.
- Investopedia — Markup — defines markup on cost and how retailers price above cost for profit.
Estimates only. Ignores volume discounts, taxes, and overhead not in unit cost. Educational information, not financial advice — confirm pricing with a qualified accountant.