Business & investing
Margin Calculator
Fill in any two of the three boxes and leave the third empty. Cost and price give you the margin; cost and a target margin give you the price to charge.
Your result will appear here.
How it's calculated
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A product that costs 60 and sells for 100 has a 40% margin but a 66.67% markup, which is why the two are easy to mix up.
To find a price from a target margin, divide the cost by one minus the margin. A 40% margin on a cost of 60 means 60 ÷ 0.6 = 100.
Margin = (Revenue − Cost) ÷ Revenue Price = Cost ÷ (1 − Margin)
How to do it in Excel
=(B2-B1)/B2- Margin, with cost in B1 and price in B2. Format the cell as a percentage.
=B1/(1-B3)- Price needed for the margin in B3.
Questions
What's the difference between margin and markup?
Both use the same profit figure. Margin divides it by the price, markup divides it by the cost. Margin can never reach 100%; markup can be any size.