Margin calculator
Margin, markup and multiplier from cost and price.
- Instant
- Free
- Private (processed locally)
- No sign-up
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.
-
Enter cost and price
Both net of tax: VAT is neither a cost nor a margin.
-
Read the 4 indicators
Gross profit in value, markup, margin, multiplier.
-
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%.