Price & marginFree
Markup and Margin Calculator
Converts markup to margin and vice versa, calculates the selling price from cost and shows how a discount changes the margin and the profit per unit.
- No sign-up
- Runs in your browser
What do you want to calculate?
Markup and margin: the difference
Markup is calculated on cost: how much you add on top of it. Margin is calculated on the selling price: how much is left from each sale. A cost of R$ 50 and a price of R$ 100 give a 100% markup and a 50% margin. The two are never equal.
Costs left out of this calculation
- Shipping (if it is free for the customer, it comes out of your margin)
- Marketplace commission (usually 8% to 20%)
- Sales taxes (vary by tax regime)
- Payment processing fee (3% to 5%)
- Allocated fixed costs (operations, packaging)
How it works
How to convert markup to margin
Markup and margin describe the same profit but use different bases. Markup is how much you add on top of cost: price = cost × (1 + markup). Margin is the slice of the price left as profit: margin = (price − cost) ÷ price. Mixing them up is the most common pricing mistake, because a 50% markup never becomes a 50% margin.
Here it is in practice. A product costs R$ 60 and you apply a 100% markup: the selling price becomes R$ 120 and the profit is R$ 60. But the margin is not 100%: it is R$ 60 ÷ R$ 120 = 50%. To convert directly, use margin = markup ÷ (1 + markup). So a 100% markup equals a 50% margin, and a 50% markup equals a 33% margin.
The calculator also shows how much discount fits without burning your margin. With a 50% margin, a 20% price cut drops the margin to about 37%, still healthy. As a benchmark, a margin above 40% gives room for free shipping and promotions; below 15%, any coupon or marketplace fee can wipe out the profit.
FAQ
Frequently asked questions
What's the difference between markup and margin?
Markup is how much you add on top of cost; margin is how much is left over the selling price. Markup = (price − cost) / cost; margin = (price − cost) / price. A 100% markup equals a 50% margin. The calculator converts one into the other instantly.
How do I calculate the selling price from cost?
Price = cost × (1 + markup) or cost / (1 − margin). E.g., a $50 cost with a 40% margin → $50 / 0.60 = $83.33. Just enter the cost and your desired markup or margin and the tool returns the final price.
How much discount can I offer without burning my margin?
The maximum discount depends on your current margin: you can only cut down to the point where the price still covers the cost. The calculator shows how much discount fits given the price and margin, so a promo never sells at a loss.
What is profit margin in e-commerce?
Profit margin is the percentage left from the selling price after subtracting the product cost: margin = (price − cost) / price × 100. In e-commerce it's wise to reserve part of it for marketplace fees, shipping and taxes.
Is the Markup vs. Margin Calculator free?
Yes, it's 100% free and runs right in your browser with no signup. You convert markup to margin, calculate the selling price from cost and simulate discounts in seconds — ideal for pricing e-commerce products.
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