CalcQuick · Profit margin & markup
Profit Margin and Markup Calculator with Target Selling Price
Choose whether to calculate profit from an existing selling price or find a price from a target margin or markup. Use cost and sales amounts on the same tax basis.
Reviewed and updated:Illustrative inputs: replace rates and costs with your own assumptions.
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How to use this calculator
- Enter your values using the units shown.
- Review the result, which updates instantly.
- Check the formula and assumptions before using the number for a decision.
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Formula and assumptions
Gross profit = selling price − cost. Margin = profit ÷ selling price × 100; markup = profit ÷ cost × 100. For target margin m, selling price = cost ÷ (1 − m/100). For target markup u, selling price = cost × (1 + u/100).
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Worked example
An item costing 80 and selling for 100 has a gross profit of 20, a 20% margin and a 25% markup. A 25% target margin on the same cost needs a selling price of about 106.67.
CalcQuick
Sources and scope
These references support the formula or category guidance. CalcQuick remains responsible for the calculator implementation.
- Margins and markups: different percentage basesAustralian Trade and Investment Commission
FAQ
Frequently asked questions
Why are margin and markup different percentages?
Both use the same gross profit, but margin divides by selling price and markup divides by cost. A 25% markup on cost therefore gives a 20% margin on sales.
Can this calculate a loss?
Yes. In the selling-price mode, a price below cost shows negative gross profit, margin and markup. Target pricing uses nonnegative target percentages.
Is the target price rounded automatically?
The result is displayed with currency rounding, but the formula retains precision. If you round an actual selling price, enter it in the selling-price mode to check the resulting margin.