Margin & Markup Calculator
Calculate profit margin or selling price from cost and markup, so you can keep your margins clearly visible and competitive. GDPR-compliant.
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Legal notice
Current as of: 11.08.2026.
The results reflect the legal and fiscal state as of the date stated above. They are provided for general information and initial guidance only. They are not individual financial, tax or legal advice, and no guarantee is given as to their accuracy, completeness or suitability for your circumstances. In particular, the results are not a substitute for an official or judicial assessment. Please check the information independently and seek qualified advice where appropriate, as you are solely responsible for any decision made in reliance on the result.
How to use this tool (video)
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Margin & Markup Calculator for retailers and freelancers
The margin calculator helps you make your price calculation clear. There is a difference between margin and markup: margin is the profit share of the selling price, markup refers to the cost price. Both matter for a solid pricing strategy.
How margin and markup are calculated
The formulas are:
Margin = (selling price − cost) ÷ selling price × 100 and Markup = (selling price − cost) ÷ cost × 100.
Key difference: margin uses the selling price as its reference, markup uses the cost price. That is why the percentages are not the same.
Worked example: You buy a product for 50.00 and sell it for 90.00. Your profit is 40.00. The margin is 40 ÷ 90 × 100 ≈ 44.4%, whereas the markup is 40 ÷ 50 × 100 = 80%. So an 80% markup equals a margin of 44.4%, not 80%.
Two calculation modes
- Margin from cost and selling price: enter cost and selling price. The tool shows profit and margin as a percentage of the selling price.
- Price with markup: enter cost price and markup percentage. The tool calculates the matching selling price.
Why margin and markup are often confused
Many confuse the two because they look similar at first. A 50% markup on the cost does not automatically mean a 50% margin, because the margin is calculated against the higher selling price. Example: a 50% markup on 50.00 gives a selling price of 75.00; the margin is then 25 ÷ 75 ≈ 33.3%. The calculator shows you both values separately.
What you can use the calculator for
- Price calculation: derive suitable selling prices from cost and target margin.
- Checking offers: recalculate the profit and margin of concrete offers.
- Comparison: see margin and markup for the same transaction side by side.
Margin and VAT: gross or net?
Whether you enter the cost and selling price including VAT (gross) or excluding it (net) does not change the mathematical relationship between margin and markup, as long as both amounts are on the same basis. Never mix a net price with a gross price in the same calculation, because it distorts the shown margin. So enter both prices either gross or both net. The calculator does not account for your output VAT or input VAT deduction; plan the VAT values into your final calculation separately.
Note: Status as of 2026. This calculator provides a mathematical estimate based on the prices entered. It does not consider further costs such as shipping, storage, marketing, commissions or taxes; your actual margin depends on your individual costs and assumptions. No single industry standard can be recommended across the board.
Frequently asked questions
What is the difference between margin and markup?
The margin is the profit share of the selling price, while the markup refers to the cost price. A 50 % markup on the cost therefore does not automatically mean a 50 % margin, because the margin is calculated against the higher selling price.
How do I calculate the margin?
Select the "Margin from cost and selling price" mode and enter both prices. The tool subtracts the cost from the selling price and puts the profit in relation to the selling price.
How do I calculate the selling price with a markup?
Select "Price with markup" and enter the cost price and the markup percentage. The tool adds the profit to the cost price and shows the matching selling price.
Which margin should I aim for?
That depends heavily on your industry, product and costs. The calculator shows you the margin and the profit in the currency so you can review your pricing. It does not give a fixed recommendation.
Why is a 50 % margin not the same as a 50 % markup?
Because the reference values differ. The margin refers to the selling price, the markup to the cost price. As the selling price is higher, equal percentages lead to different results. The calculator shows you both values separately.
Does the calculation include further costs?
No. The calculator only considers the cost and selling price. Shipping, storage, marketing, commissions and taxes must be planned into your calculation separately.
Are my prices stored anywhere?
No. All calculations run entirely in your browser on your device, right in your browser. Your cost and selling prices are neither saved nor transmitted to our server.