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Margin Calculator
Calculate profit margin from price and cost, solve the sale price needed for a target margin, or find the maximum cost allowed.
Margin Calculator
Use this free margin calculator to find profit margin from selling price and cost, solve the sale price needed to hit a target margin, or find the maximum cost allowed at a fixed price. It works well alongside the Profit Margin Calculator, the Break Even Calculator, and the wider Financial Calculators category.
Calculation Mode
Switch between checking your current margin, pricing to a target margin, or finding the maximum cost allowed for a target margin.
Pricing Information
Quick Notes
Margin is based on revenue. Markup is based on cost.
Target margin should always stay below 100%.
Use unit count to convert totals into unit economics.
Results
margin viewMargin Calculation Loaded
This pricing setup generates $45.00 in profit and a margin of 36.0%.
Margin Summary
Selling Price / Revenue$125.00
Cost$80.00
Profit$45.00
Margin36.0%
Markup56.3%
Units100
Pricing Position
Required Sale Price$125.00
Max Cost Allowed$80.00
Revenue per Unit$1.25
Cost per Unit$0.80
Profit per Unit$0.45
Target Margin36.0%
Margin comparison snapshot
Margin and markup describe the same profit from different reference points. Margin is based on revenue, while markup is based on cost.
Margin36.0%
Markup56.3%
Revenue per unit
$1.25
Average selling price per unit.
Cost per unit
$0.80
Average cost carried by each unit.
Profit per unit
$0.45
Average profit contribution per unit.
What is a margin calculator?
A margin calculator is a pricing and profitability tool that helps you understand how much of your selling price remains as profit after cost is deducted. It turns a price and cost relationship into a clear percentage so you can judge whether an offer is thin, healthy, or aggressive.
This is especially useful when you are setting prices, reviewing product economics, or deciding how much discount room you can afford before profit starts to disappear. For broader profitability analysis, compare this result with the Profit Margin Calculator, the Break Even Calculator, and the Financial Calculators page.
How this calculator works
In margin mode, the calculator subtracts cost from selling price to find profit, then divides profit by selling price to produce margin percentage. It also calculates markup, which divides the same profit by cost instead. This gives you both pricing views side by side.
In target pricing modes, the calculator works backward. If you know the cost and desired margin, it solves the sale price required. If you know the sale price and desired margin, it solves the maximum cost allowed. That makes it useful for negotiations, discount decisions, and unit-economics planning. If you want to connect this with return analysis, continue into the ROI Calculator or the Discount Calculator.
Worked example
The default example uses a selling price of $125.00, cost of $80.00, and 100 units so you can quickly review total margin and unit economics.
Example inputs
Selling price$125.00
Cost$80.00
Units100
Profit$45.00
Example result
In the default example, a selling price of $125.00 and a cost of $80.00 produce a profit of $45.00, which equals a margin of 36.0% and a markup of 56.3%. Across the entered unit count, that turns into a per-unit profit of $0.45.
Frequently asked questions
A margin calculator estimates the profit left after cost is subtracted from selling price, then expresses that profit as a percentage of revenue. It can also work backward to solve for the selling price needed to hit a target margin or the maximum cost you can afford at a given price.
Related financial tools
Continue from pricing decisions into profitability, discounting, and return analysis with these related tools.
If you are pricing a product or service, it also helps to review the Profit Margin Calculator, the Break Even Calculator, and the Discount Calculator before finalizing your price ladder.
Explore This Tool in Context
Margin Calculator is part of the Financial Calculators collection. If you want a broader view of similar workflows, open the Financial Calculators category page or browse all QuickTools categories.
Common next steps after this tool include Estate Tax Calculator, Social Security Calculator and Annuity Payout Calculator.
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