Decision tools built for clarity
Profit Margin and Markup Calculator
Calculate profit, margin, and markup, or solve a selling price from a target percentage.
Enter the required values, select the applicable options, and calculate.
These identities exclude taxes, fees, returns, inventory timing, and accounting-policy differences.
Methodology
Formula or transformation
Uses one identity kernel for cost, revenue, profit, margin, markup, and reverse selling-price modes.
Variables
- Cost
- Revenue
- Profit
- Margin percentage
- Markup percentage
Units
- Currency
- Percent
Rounding policy
Canonical arithmetic retains declared precision before money and percentage display rounding.
All three modes use the same cost, revenue, profit, margin, and markup identities so direct and reverse results remain consistent.
Calculate profit, margin, and markup, or solve a selling price from a target percentage.
Reviewed sources
- NIST — Rules and style conventions for expressing values Reviewed on 2026-09-07
Formula review history
-
Initial identity and rounding review.
Reviewed 2026-09-07 for formula version profit-margin-markup-identities-v1
Assumptions
- Inputs are interpreted using the displayed units and options.
- The calculation follows the methodology and factors listed in the sources.
Limitations
- Display rounding can hide additional decimal places.
- The calculation cannot add accuracy that is absent from the submitted inputs.
- These identities exclude taxes, fees, returns, inventory timing, and accounting-policy differences.
Worked example
A cost of 60 and revenue of 100 gives profit 40, margin 40%, and markup about 66.67%.
Frequently asked questions
What is the difference between margin and markup?
Margin divides profit by revenue, while markup divides the same profit by cost.
How do the target modes set a selling price?
Choose a target margin or markup and the calculator solves the same identities backward from the entered cost.