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Margin Calculator

Calculate profit margin, gross margin, or solve backward for revenue or cost from any combination. Used in pricing, retail and accounting.

How to use the Margin Calculator

  1. Enter your inputs into the Margin Calculator above.
  2. Results update instantly as you type — no submit button needed.
  3. Adjust any value to see how the result changes in real time.

The margin formulas

Profit margin = (Revenue − Cost) / Revenue · · · Markup = (Revenue − Cost) / Cost

Margin and markup measure the same gap differently. A 50% margin equals a 100% markup. Margins are bounded at 100%; markups can exceed it.

Worked example

An item costing $40 sold for $100: profit margin = (100 − 40)/100 = 60%; markup = (100 − 40)/40 = 150%. To target a 40% margin on the same $40 cost, set price = 40 / (1 − 0.40) ≈ $66.67.

Frequently asked questions

What is the difference between margin and markup?

Margin is profit as a percent of selling price. Markup is profit as a percent of cost. Same dollar amount, different denominator, very different percentages.

What is a typical retail margin?

Varies widely: grocery 1–3%, big-box 3–5%, apparel 50–60%, restaurants 5–10%, SaaS 70–80%. Average margins reflect competition and cost structure in each industry.

How do I price for a target margin?

Price = Cost / (1 − target margin). For a 30% margin on $50 cost: 50 / 0.70 = $71.43.

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