Price, margin and markup calculator
Work out a selling price from your own costs and a target margin or markup, and see what a discount does to profit.
Result
Enter your costs and choose markup or margin to see a price.
How it works
Markup: price = cost × (1 + markup). A cost of 100 with 20% markup gives 120. Margin: price = cost ÷ (1 − margin). A cost of 100 with 20% margin gives 125.
Markup vs margin
Markup is a percentage of your cost. Margin is a percentage of the selling price. 20% markup on 100 gives 120; 20% margin on 100 gives 125.
Adding a discount
A 10% discount on a price of 125 gives a selling price of 112.50 and a profit of 12.50. The discount changes the selling price, not the cost.
Common mistakes
- Using markup when you meant margin.
- Forgetting overhead.
- Forgetting that a discount lowers the margin.
A note for Canadian businesses
This tool does not add sales tax. Add tax on your quotes and invoices using the rate you look up yourself. No tax rates are shown here.
Questions
What is the difference between margin and markup?
Markup is added to your cost. Margin is the share of the selling price that is profit.
How do I turn a margin into a markup?
You do not need to. Choose margin and the calculator uses the margin formula. It does not convert margin into markup.
How do I include my own labour?
Enter your hours and your cost per hour. Those figures are yours.
Does the tool add GST, HST, PST, or QST?
No.
What does a discount do to profit?
It lowers the selling price and the profit. The cost stays the same.
Why can't margin be 100%?
A 100% margin would mean the cost is zero, so there is no price to calculate.
Can I save my price?
Saving needs a free account. Without one, your entries stay on this page.