Finance

Margin calculator

Margin, markup and multiplier from cost and price.

  • Instant
  • Free
  • Private (processed locally)
  • No sign-up
Gross profit
Markup (on cost)
Margin (on price)
Multiplier

Target price from desired margin

Required selling price

Margin, markup, multiplier: speak all three languages of trade

The supplier talks multipliers, the accountant margins, the salesperson markups — and confusing them is expensive. Enter cost and price: the tool shows all four indicators at once, and computes the exact price to hit your target margin.

  1. Enter cost and price

    Both net of tax: VAT is neither a cost nor a margin.

  2. Read the 4 indicators

    Gross profit in value, markup, margin, multiplier.

  3. Set your prices

    The reverse block gives the exact price for the target margin, from cost to tag.

Conversion table

Margin (on price)Markup (on cost)Multiplier
20%25%× 1.25
30%42.9%× 1.43
40%66.7%× 1.67
50%100%× 2.00
66.7%200%× 3.00

Everything net of tax: collected VAT is never a margin, you pass it on. And gross profit does not yet pay rent or salaries — watch your break-even point too.

Frequently asked questions

Markup vs margin: what is the difference?

Both measure the same profit, but on different bases. Markup relates profit to cost: (price − cost) ÷ cost. Margin relates it to the selling price: (price − cost) ÷ price. For cost 60 and price 100: markup 66.7%, margin 40%.

Why is a 50% margin not a 50% markup?

Because the bases differ: a 50% margin (half the price is profit) corresponds to a 100% markup (the price is double the cost). Confusing the two loses money when setting prices.

How do I price for a 40% target margin?

Divide the cost by (1 − 0.40): a product bought at $60 must sell at 60 ÷ 0.6 = $100. That is exactly what the tool’s “target price” block does.

What is the multiplier?

The price ÷ cost ratio, widely used in retail and restaurants: a multiplier of 2 (price double the cost) equals a 50% margin; a multiplier of 3, 66.7%.