Markup and Margin Calculator
Set a selling price, understand markup versus margin, include selling fees and discounts, and compare pricing scenarios. Results and worked formulas update as you type.
Try an example
Currency selection changes formatting only; it does not convert exchange rates. Internal calculations retain precision until display. Store rounding rules may differ.
Build your pricing
All entered costs exclude tax. Order costs and fixed fees are divided by quantity. The percentage fee is charged on the tax-included customer payment. Markup and margin pricing modes set the undiscounted price before selling fees; use the target block below to price for a margin after fees.
Your pricing breakdown
This is profit after the costs and fees entered here, not accounting net profit. Unentered overhead, income tax, refunds and other expenses are excluded. Tax collected from customers is not treated as revenue.
The current pricing produces a loss after the entered costs and fees.
No non-negative discount can avoid a loss at this list price, or the fee structure prevents break-even.
Where does the selling price go?
The bar splits tax-exclusive revenue into entered costs, selling fees and remaining profit. If there is a loss, the separate red indicator shows the shortfall; it is not drawn as a negative pie slice.
How does price affect profit?
Total profit / List price
The horizontal axis is the list price on your chosen tax basis. Quantity, discount, costs, tax and fees stay unchanged. The line shows total profit after entered fees; the dot marks your current price.
See every calculation
Symbols: C is unit cost, Q is quantity, P is list price before tax, S is discounted revenue per unit before tax, t is the tax rate, f is the fee rate, F is the fixed order fee, and R is profit after fees. Percentages in the formulas are divided by 100.
Price for a target margin after fees
This block uses the main costs, quantity, tax, fee structure and discount. It finds the list price that leaves the chosen percentage of tax-exclusive revenue as profit after entered fees.
Convert markup and margin
These two conversions are independent of the main pricing. They compare the same profit with cost or selling price, without selling fees.
Known markup (%)
Known margin (%)
Prices for different target margins
Each row uses the main costs, tax, quantity, discount and fees. An unavailable result means the entered fee structure cannot leave that target margin.
Compare two pricing offers
Both offers share the main costs, quantity, tax rate and selling-price basis. Each offer has its own list price, discount, percentage fee and fixed order fee. Compare profit, not only revenue.
Offer A
Offer B
Offer comparison
Markup is not the same as margin
With a cost of 100 and a selling price of 150, profit before fees is 50. The markup is 50% because the denominator is cost; the margin is about 33.33% because the denominator is selling price. A 50% markup does not mean a 50% margin. Adding fees or discounting the price reduces the remaining profit.
Pricing calculator questions
Why are markup and margin different?
Markup divides profit by cost. Margin divides the same profit by tax-exclusive selling revenue. The denominator changes, so the percentages usually differ.
Does the calculator include tax in profit?
No. The tax-included price is converted to revenue before tax. Customer tax is shown separately. The percentage selling fee is nevertheless calculated on the tax-included payment, as labelled.
How are order costs and fixed fees allocated?
The entered order cost and fixed selling fee each apply once to the whole order. They are divided by the entered quantity to calculate per-unit values.
Is this accounting net profit?
No. It only subtracts the costs and selling fees you enter. Business overhead, income tax, returns and other unentered expenses are not included.
How is the maximum safe discount calculated?
The calculator finds the discounted revenue needed to cover entered costs and fees, then compares it with the list price before tax. If the original price already produces a loss, no safe discount is shown.
Why can a target price be unavailable?
A percentage fee charged on customer payments may leave too little revenue for the chosen margin. A 100% discount also prevents a positive-cost target price. Zero total cost does not determine a unique percentage-based target price.
Calculations run in your browser. Entered prices are not submitted by this calculator to a server.