Business

Margin Markup Calculator

Business

Margin Markup Calculator

Live answer$100profit $20 · margin 20% · target-margin price $100

Cost (currency)Your product, material or job cost before profit.Markup (%)Markup is profit as a percentage of cost.Target margin (%)Margin is profit as a percentage of selling price.

Live result$100profit $20 · margin 20% · target-margin price $100

Formula used

Markup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).

This is the method behind the answer, so the result can be checked rather than simply trusted.

Live math canvas

Your numbers, formula and explanation together

Margin Markup Calculator: $100. profit $20 · margin 20% · target-margin price $100

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Markup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).

Apply the formulaMarkup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).$100profit $20 · margin 20% · target-margin price $100

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Cost: 80 currency
Markup: 25 %
Target margin: 20 %

Resulting answer

$100

profit $20 · margin 20% · target-margin price $100

Answer: $100
Live support: profit $20 · margin 20% · target-margin price $100

Assumptions used

What this answer assumes

Gross arithmetic only. Add real costs before trusting the margin.

Cost is the entered base cost before gross profit is added.
Markup percentage is measured against cost, while margin percentage is measured against selling price.
The target-margin price is only valid below 100% margin; the input is capped below 100% to avoid division by zero.
This is gross pricing arithmetic only. It does not include tax, VAT/GST, discounts, payment fees, freight, waste, warranty risk, overhead allocation or legal accounting advice unless you include those costs yourself.

Master’s Tip

How to use the result well

Master’s Tip: decide whether your quote is controlled by markup on cost or margin on selling price before sending it. If material waste, card fees, callbacks or discounts are likely, put them into cost first or the “profitable” price can disappear on the job.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Cost: 80 currency
Markup: 25 %
Target margin: 20 %

What-if check

Markup sensitivity

Same cost, with markup moved around the current input. Notice how the resulting margin is lower than the markup because margin uses selling price as the denominator.

Markup	Selling price	Resulting margin
15.00%	92.00	13.04%
25.00%	100.00	20.00%
35.00%	108.00	25.93%

Target margin	Required price	Gross profit
20.00%	100.00	20.00

Visual proof

Cost vs gross profit

The blue segment is cost. The gold segment is gross profit. Margin is the gold share of the whole selling price, not a percentage of the blue cost segment.

Visual grid

This number is one point on a larger pattern

Margin Markup is not just a final answer. It is a step on a line: before and after, input and output, assumption and result.

Micro-timehours, minutes, shiftsHuman scaledays, weeks, projectsMacro-timemonths, years, calendars

InputFormulaResult

$100

CalculationTime keeps the path visible: the input, the method and the final number belong together.

$100profit $20 · margin 20% · target-margin price $100

Inputs

Cost: 80 currency
Markup: 25 %
Target margin: 20 %

Method

Markup price = cost × (1 + markup ÷ 100). Gross profit = selling price − cost. Margin % = gross profit ÷ selling price × 100. Target-margin price = cost ÷ (1 − target margin ÷ 100).

Cost 80 with 25% markup gives price = 80 × 1.25 = 100. Gross profit is 100 − 80 = 20. Margin is 20 ÷ 100 × 100 = 20%. To target a 20% margin from the same cost, price = 80 ÷ (1 − 0.20) = 100.

Assumptions

Cost is the entered base cost before gross profit is added.
Markup percentage is measured against cost, while margin percentage is measured against selling price.
The target-margin price is only valid below 100% margin; the input is capped below 100% to avoid division by zero.
This is gross pricing arithmetic only. It does not include tax, VAT/GST, discounts, payment fees, freight, waste, warranty risk, overhead allocation or legal accounting advice unless you include those costs yourself.

Notes

Use this space on the printed report for client, supplier, classroom, job-location, measurement, quote or approval notes.