Margin Markup Calculator

What the calculator covers

This calculator helps you move between the most common pricing views used by retail, ecommerce, and finance teams. You can compare margin and markup from an existing cost and selling price, or calculate a new selling price from a target markup or target margin.

Margin and markup are not the same

Markup measures profit as a percentage of cost, while margin measures profit as a percentage of the final selling price. Because they use different denominators, the same product will always have a higher markup percentage than margin percentage when it is sold for a profit.

When each mode is useful

• Use the cost and selling price mode when you want to audit an existing SKU, campaign price, or quote.
• Use the target markup mode when your business prices products by adding a standard percentage on top of landed cost.
• Use the target margin mode when leadership cares about profit as a share of the final selling price, such as in merchandising or channel planning.

Practical pricing tips

Make sure the cost value you enter includes the pieces that matter for your workflow, such as freight, packaging, commissions, or platform fees. If your real costs happen after the sale, calculate with an adjusted landed cost so the displayed margin and markup stay realistic.

Limitations

The tool focuses on unit economics for one item at a time. It does not model taxes, multi-item bundles, tiered discounts, or time-based cash flow. For those cases, use the result here as a quick checkpoint before building a fuller spreadsheet or forecast.