Margin Calculator
Calculate profit margin and markup
About the Margin Calculator
Profit margin and markup are easy to confuse, and mixing them up can quietly wreck your pricing. The Margin Calculator takes a cost price and a selling price and reports both numbers clearly: the profit in dollars, the profit margin as a percentage of the sale, and the markup as a percentage of the cost.
It is a daily tool for anyone who sets prices — a shop owner deciding what to charge, a freelancer quoting a project, or a reseller checking that a deal still earns. Seeing margin and markup side by side makes the difference obvious: a 50% markup is only a 33% margin, and this tool spells that out instead of leaving you to guess.
How to Use the Margin Calculator
- Enter your cost price — what the item or service costs you.
- Enter your selling price — what the customer pays.
- Read the profit amount, color-coded green for a gain or red for a loss.
- Compare the markup percentage (profit over cost) with the profit margin percentage (profit over selling price), then Copy the figures.
Why Use ToolForge’s Margin Calculator
- It reports margin and markup as distinct metrics, so you never accidentally treat one as the other when setting prices.
- Profit is color-coded — green when you are making money, red when the selling price is below cost — for an instant read.
- It handles the edge case of a zero selling price gracefully rather than dividing by zero.
- Calculations run in your browser with no account, so confidential cost data stays on your device.
Frequently Asked Questions
What is the difference between margin and markup?
Markup is profit as a percentage of your cost, while margin is profit as a percentage of the selling price. A product that costs $10 and sells for $15 has a 50% markup but a 33.3% margin. They describe the same profit from two different angles.
How do I set a price for a target margin?
To hit a desired margin, divide your cost by (1 minus the margin as a decimal). For a 40% margin on a $12 cost, that is 12 ÷ 0.6 = $20. Enter cost and candidate prices here to check the margin each one produces.
Why is my profit showing in red?
A red profit means your selling price is below your cost — you would lose money on the sale. Raise the selling price above the cost price to move into profit, which the calculator shows in green.
