Business pricing

Margin and Markup Calculator

Last updated: January 20, 2026

Built and maintained by Aaron Jegla

Price with confidence. Calculate margin, markup, and profit, or solve for the price or cost you need to hit a target.

Pricing details

Pick the value you want to solve for.

Your cost of goods or direct cost to deliver.

Price before discounts or fees.

Add discounts, per-sale costs, or payment processing fees.

Best for pricing products or services when you know cost or target margin.

Not for full P&L statements, taxes, or inventory planning.

Need percent breakdowns? Try the Percentage Calculator.

How to use this calculator
  1. Choose the calculation type you need.
  2. Enter cost, price, or target margin or markup.
  3. Add discounts or fees if they apply, then calculate.

Use Reset to return to the default examples.

Summary

Results reflect net price after discounts and fees.

Margin

0%

Markup

0%

Profit per sale

$0

Net price

$0

Total cost

$0

List price

$0

Mode: Find margin and markup.

Total cost $0 (0%)
Profit $0 (0%)

Profit makes up 0% of net price.

Price breakdown

Base cost: $0

Extra costs: $0

Fees: $0

Discount: $0

Sources: Investopedia gross margin, Investopedia markup, CFI gross margin, AccountingTools marginal cost pricing

Assumptions: Margin and markup are calculated using net price after discounts. Optional fees and extra costs are added to total cost. Sales tax is excluded from revenue.

Disclaimer: Estimates only and not financial, accounting, or tax advice. Confirm pricing decisions with your accounting system.

How this margin and markup calculator works

Every result uses the same core pricing math.

Net price = list price x (1 - discount)

Total cost = base cost + extra costs + fixed fees + (fee % x net price)

Profit = net price - total cost

Margin = profit / net price

Markup = profit / total cost

When you solve for price, the calculator works backward so the target margin or markup is met after discounts and fees.

Example pricing scenarios

Use these examples to sanity-check your results.

Example: margin and markup from price

Base cost $40, list price $80, no discounts or fees.

  • Net price = $80.
  • Profit = $80 - $40 = $40.
  • Margin = $40 / $80 = 50%.
  • Markup = $40 / $40 = 100%.

Example: target margin with fees

Base cost $25, target margin 35%, 10% discount, 2.9% fee + $0.30.

  • Calculator backs into the list price after discount and fees.
  • Net price stays high enough to cover fees and cost.
  • Margin result matches the target after adjustments.

Margin and markup insights

Quick context to help you interpret the results.

Margin vs markup

Margin uses selling price as the base. Markup uses cost.

Discounts shrink margin

A 10% discount cuts revenue but leaves costs the same.

Fees add hidden costs

Payment fees and shipping reduce net margin quickly.

Net vs gross margin

Gross margin ignores extra costs. Net margin includes them.

Break-even price

When profit is $0, margin and markup are 0%.

Rounding matters

Use full precision in pricing systems and round at checkout.

Margin and markup calculator FAQs

Click a question to expand the answer.

What is the difference between margin and markup?

Margin is profit divided by selling price. Markup is profit divided by cost. Markup is always higher for the same price and cost.

Is this gross margin or net margin?

By default it is gross margin using your base cost. If you add fees, shipping, or discounts, the calculator reports net margin after those adjustments.

How do I price for a target margin?

Use the Target margin price mode. Enter your cost and target margin, then calculate. The calculator accounts for any discounts or fees you add.

Why is markup higher than margin?

Margin uses price as the base, while markup uses cost. Because the base is smaller for markup, the percentage is larger.

Should sales tax be included in margin?

Most pricing uses pre-tax revenue because sales tax is collected and passed through. This calculator assumes taxes are excluded from revenue.

Can margins be negative?

Yes. If total costs exceed the price after discounts and fees, margin and markup will be negative.

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