# Margin Calculator

URL: https://speedycalculator.com/calculators/finance/margin/
Last updated: 2026-10-25

> The margin calculator works out the selling price, profit, gross margin and markup from any two of cost, revenue (price), margin and profit – type into any field and the others update.

## Inputs

- Cost
- Margin (%)

## Results

- Revenue (selling price)
- Profit
- Markup

## Formula

```
Margin = profit ÷ revenue × 100
Revenue = cost ÷ (1 − margin)
Profit = revenue − cost
Markup = profit ÷ cost × 100
```

## Explanation

Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is only a 33.3% margin – mixing them up is one of the most common pricing mistakes.

### How to use the Margin Calculator

- **Cost**
- **Margin**
- Every result field is editable: type into **Revenue (selling price)** or any other result and **Margin** plus every other field update to match.

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the cost and the margin you want – or type a revenue or profit into the results.

### Tips

- Know the difference between margin (profit ÷ price) and markup (profit ÷ cost).
- Apply successive discounts one after another – they do not simply add up.
- Check whether prices already include sales tax or VAT.
- Round prices only at the very end of the calculation.

### Common mistakes to avoid

- Adding discount percentages together.
- Pricing from a target margin using the markup formula.
- Forgetting payment-processing and shipping fees.

### Inputs explained

FieldWhat to enterCostAmount in your currencyMarginIn %

### What each result means

- **Revenue (selling price)** = [Cost]÷(1 - [Margin]÷100)
- **Profit** = [Revenue (selling price)] - [Cost]
- **Markup** = [Profit]÷[Cost]×100

### Example values

How the main result changes when **Margin** changes and everything else stays at the example values above:

Margin (%)Revenue (selling price)12.568.5718.7573.85258031.2587.2737.59650120

## Worked example

Inputs — Cost: $60; Margin: 25 %.

Results — **Revenue (selling price) = $80.00**; Profit = $20.00; Markup = 33.33 %.

## FAQ

**What is the difference between margin and markup?**
Margin is profit ÷ price; markup is profit ÷ cost.

**What is a good profit margin?**
It varies – retail often 20–50% gross, software 70%+.

**Can margin be over 100%?**
No; markup can be.

**What formula does the Margin Calculator use?**
Margin = profit ÷ revenue × 100.