Profit
Selling price minus cost gives unit profit.
067 · BUSINESS & FINANCE
Selling Price & Margin Calculator
Calculate profit and margin from cost and selling price, then reverse target selling price and allowed cost from a target margin.
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MARGIN WORKSPACE
Enter prices and a target margin
Entered amounts stay in this browser and are not sent to or stored on a server.
Currency is for display only; no exchange-rate conversion is performed.
Margin
33.3333%Profit₩5,000
Markup50%
Selling Price₩15,000
Formula
Margin = (Selling − Cost) ÷ Selling × 100 · Markup = (Selling − Cost) ÷ Cost × 100HOW TO USE
How to use
- 01
Enter cost and selling price to review profit and margin.
- 02
Use Target Margin Price with cost and a target margin.
- 03
Use Allowed Cost with a selling price and target margin to find the maximum cost.
- 04
Compare margin and markup, which use different denominators.
- 05
Copy the result or reset to compare another pricing scenario.
- 06
After calculating a target-margin price, compare it with realistic market pricing before using it.
MARGIN GUIDE
Margin and markup guide
Margin is based on selling price, markup on cost, and target price is reversed from cost divided by one minus target margin.Margin
(Selling − Cost) ÷ Selling × 100.
Markup
(Selling − Cost) ÷ Cost × 100.
Target price
Cost ÷ (1 − Target Margin) reverses the needed selling price.
Allowed cost
Selling × (1 − Target Margin) gives the maximum cost.
Loss state
When selling price is below cost, profit and margin are negative.
IMPORTANT NOTES
Important notes
- Margin uses selling price as the denominator; markup uses cost.
- A 20% margin on a cost of 10,000 requires a selling price of 12,500. Cost × 1.2 is a 20% markup, not a 20% margin.
- When selling price is below cost, profit and margin are shown as negative.
- A 100% target margin is undefined because the target-price divisor becomes zero.
- Tool 067 is a gross-style reference based on the entered unit cost/COGS; it is not net profit after tax, fees, shipping, advertising, or overhead.
- Currency changes display formatting only and does not perform FX conversion.
- Margin percentage can mean margin on selling price or markup on cost, so check the definition before comparing figures from other sources.
FAQ
Frequently asked questions
01What is the margin on cost 10,000 and selling price 15,000?+
Profit is 5,000, margin is 33.33%, and markup is 50%.
02What selling price gives a 20% margin on cost 10,000?+
10,000 ÷ (1 − 0.2) = 12,500.
03Is 30% markup the same as 30% margin?+
No. A 30% markup on cost 10,000 gives a selling price of 13,000 and a margin of about 23.08%.
04Is margin the same as net profit margin?+
No. This calculator is a gross-style reference based on the cost/COGS you enter.
05Can selling price be lower than cost?+
Yes. Profit and margin are displayed as negative to show a loss.