Calcscape

Margin Calculator

Margin is profit ÷ price — not the same as markup. Click any i for detail.

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Cost and price

Mode
i
Mode

Compute margin from a price, or solve price from a target margin.
Cost ($)
i
Cost

What you pay (or COGS) per unit.
Price ($)
i
Price

Selling price. Used in from-price mode.
Target margin (%)
i
Margin

Used in from-margin mode. 25 means 25% of price is profit.

How to use this calculator

  1. Enter unit cost.
  2. Either enter a selling price or a target margin.
  3. Read margin, markup, and profit.
  4. Use the markup calculator if you think in cost-plus percent.

Results explained

Margin = (price − cost) / price. Markup = (price − cost) / cost. A 25% margin requires a 33.3% markup.

Quick reference: margin vs markup

They only match at 0.

ItemDetail
20% margin25% markup
25% margin33.3% markup
50% margin100% markup
Price for 25% margincost / 0.75

Ignores overhead, fees, and taxes.

How the estimate is built

margin = (P−C)/P; P = C / (1 − margin) when solving for price.

Example scenario

Cost $40, price $60 → profit $20, margin 33.3%, markup 50%.

FAQ

Why isn’t 25% margin a 25% markup?

Different denominators: price vs cost.

Net margin?

This is gross (price vs cost), not after operating expenses.

Break-even units?

See the break-even calculator.