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Profit margin and markup calculator

Get your margin and markup right, and price your products with confidence.

Reviewed by the Sumtrail editorial team. Rules last checked 3 October 2026. How we check our numbers

Profit margin and markup calculator

Find your margin and markup, or the price you need for a target margin or markup.

I know
Optional. Shows the price customers pay.

Margin and markup at a glance

MarkupMargin
25%20%
50%33.33%
100%50%

Worked examples

Cost 1,000 and price 1,500: profit is 500, margin is 500 ÷ 1,500 = 33.33%, and markup is 500 ÷ 1,000 = 50%.

For a 25% margin on a cost of 1,000, the price is 1,000 ÷ (1 − 0.25) = 1,333.33. For a 40% markup, the price is 1,000 × 1.40 = 1,400.

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Common questions

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Buying at 1,000 and selling at 1,500 is a 33.33% margin but a 50% markup.

How do I price for a 25% margin?

Divide the cost by 0.75. A cost of 1,000 needs a price of 1,333.33.

Can a margin be more than 100%?

No. Margin can approach 100% but never reach it. Markup can be any size.