How this calculator works
Choose any independent pair of cost, selling price, profit, margin or markup. Margin divides profit by the selling price, while markup divides it by cost. The calculator reconstructs positive cost and price, then reports all five measures. A second scenario uses the same cost so its selling price and profit are directly comparable. Use values before sales tax and include all costs that belong in the cost basis.
Formula
Profit = revenue - cost. Margin = profit / revenue. Markup = profit / cost. Revenue = cost / (1 - margin) = cost x (1 + markup). Margin = markup / (1 + markup).
Worked example
A $100 cost with 20% margin sells for $125, making $25 profit and 25% markup. Comparing 50% markup at the same cost gives a $150 selling price, $50 profit and 33.333333% margin.
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Frequently asked questions
Why are margin and markup different?
The same profit is divided by different bases. Revenue is larger than cost for a profitable sale, so margin is lower than markup.
Can I calculate a loss?
Yes. A negative profit, margin or markup is allowed if the implied cost and selling price remain positive.
Why are some pairs unavailable?
Margin and markup alone determine a ratio but cannot set a dollar scale. A zero profit with a zero ratio also fails to determine a unique cost and price.