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Profit is the core question in any sale, but it's asked two ways: "if I mark up my cost by this much, what's my selling price?" and "if I sell at this price, what profit do I make?" This tool does both. It also surfaces a trap that catches many sellers: markup and margin are different percentages for the same sale.
Pick the direction, enter your numbers, and get the sale price or the profit and margin instantly.
How is it calculated?
Two directions
Cost + margin → sale price: multiply the cost by (1 + margin). A cost of 800 with a 35% markup sells for 800 × 1.35 = 1,080.
Profit from cost and sale price: profit = sale − cost; margin = profit ÷ cost. Buy at 800, sell at 1,080, and the profit is 280, a 35% markup.
Markup vs margin — the trap
The same sale has two different percentages: - Markup: profit ÷ COST. In the example, 280 ÷ 800 = 35%. - Margin: profit ÷ SALE price. Here, 280 ÷ 1,080 = 25.9%.
So "35% markup" and "26% margin" describe the identical deal. Suppliers usually talk markup (on cost); accountants talk margin (on revenue). Mixing them up leads to real pricing mistakes.
Gross, not net
This is the gross profit on the item (sale − cost). Your true net profit also subtracts overheads — rent, staff, shipping, fees and tax. Price with enough margin to cover those, not just the item cost.
Where it helps
- Setting a selling price from a target markup
- Checking the margin a given price actually yields
- Comparing supplier quotes and reseller economics
Worked example
You buy an item for 800 and want a 35% markup: the sale price is 800 × 1.35 = 1,080, a profit of 280. But watch the two percentages — that 35% is the markup on cost; expressed as a margin on the sale price it's 280 ÷ 1,080 = 25.9%. Telling a customer "I work on a 26% margin" and telling a supplier "I add 35%" describe the exact same 280 of profit. Knowing which base you're quoting against is what keeps your pricing consistent.
FAQ
How do I calculate profit?+
Profit = sale price − cost. The margin is profit ÷ sale price and the markup is profit ÷ cost. Buy at 800, sell at 1,080: 280 profit, 35% markup, 25.9% margin. The tool works in both directions.
How do I find a sale price from a target markup?+
Multiply the cost by (1 + markup): 800 with a 35% markup is 800 × 1.35 = 1,080. Choose the "Cost + margin → sale price" mode.
What is the difference between markup and margin?+
Markup is profit relative to COST; margin is profit relative to the SALE price. The same deal is a 35% markup and a 25.9% margin — different bases, same profit.
Why is margin smaller than markup?+
Because the sale price (margin's denominator) is larger than the cost (markup's denominator). Dividing the same profit by a bigger number gives a smaller percentage.
Is this my net profit?+
No — this is gross profit (sale − cost). Net profit also subtracts overheads like rent, staff, shipping, fees and tax. Price to cover those, not just the item cost.
Can I calculate a loss with this?+
Yes — if the sale price is below cost, the result is negative profit, i.e. a loss. Enter the numbers and a negative outcome shows the shortfall.