Free Small Business Toolkit
Profit Margin & Markup Calculator
Enter your cost and either your target margin or your current price. See the price you need, your markup, and a margin ladder from 20% to 70%.
Your numbers
Free. No sign-up. Your numbers stay in your browser unless you email them to yourself.
We've filled in an example. Change any number and press Calculate.
Let Alfred keep track of this for you
SmallBizSuite turns your prices into professional proposals and invoices your clients can accept and pay online.
How to read your results
- Margin is profit divided by price. Markup is profit divided by cost. A 50% margin equals a 100% markup.
- Use the ladder to see what each step up in margin does to your price.
Exact math on the numbers you enter. A planning aid, not tax, legal or financial advice.
Common questions
+What is the difference between margin and markup?
Margin compares profit with the selling price; markup compares profit with your cost. The same sale always shows a higher markup percentage than margin percentage.
+What is a healthy margin?
It depends on your industry. Service businesses often run much higher margins than product resellers. Compare with your own costs and goals rather than a single rule of thumb.
Stop doing this math by hand
SmallBizSuite keeps your contacts, invoices, expenses, goals and cash flow in one app you own, so the numbers are already there.