Margin & markup
See what you earn on a quote, or find the price that meets your target.
Your pricing inputs
Use the same basis for cost and price: both per shipment or both per unit. Include the costs relevant to your comparison. Currency selection labels amounts; it does not convert them.
Same profit. Different denominator.
Margin % = profit ÷ selling price × 100
Markup % = profit ÷ cost × 100
Price for target margin = cost ÷ (1 − margin ÷ 100)
Price for target markup = cost × (1 + markup ÷ 100)
A cost of 1,000 and selling price of 1,250 produces a profit of 250. That is a 20% margin on revenue and a 25% markup on cost.
What is included?
This is profit relative to the cost you enter. It is not net profit unless that cost includes all relevant expenses. Use consistent treatment of taxes and include applicable freight, handling and other costs.
Targets and rounding
Target modes require a positive cost and a non-negative percentage. A target margin must be below 100%. The suggested selling price is rounded up to the next 0.01 currency unit, then the resulting margin and markup are calculated from that price. Known-price mode accepts a zero cost; markup is then undefined. A selling price below cost shows a loss.