Free tool

Margin and selling price calculator

Find the selling price that gives your target margin, or work out the margin and markup of a price you already charge.

What you are looking forThe selling priceThe margin of a price

Cost ($)

Target margin (%)

Profit per sale: $40.00
Markup: 66.7%
Margin: 40%
Selling price: $100.00

$60.00 ÷ (1 − 40%) = $100.00

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Frequently asked questions

What is the difference between margin and markup?

Both measure the same profit, on a different base. Margin is calculated on the selling price, markup on the cost. An item that costs $60 and sells for $100 earns $40: the margin is 40% (40 ÷ 100), the markup 66.7% (40 ÷ 60).

Why does adding 40% to the cost not give a 40% margin?

Because adding 40% to the cost is a markup. $60 plus 40% is $84, a margin of only 28.6%. For a 40% margin, divide the cost by 0.60: $60 ÷ 0.60 = $100.

Are taxes included?

No. Enter the cost and the price before taxes: GST and QST are added to the selling price and are not part of your margin.

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