Profit margin and markup calculator
Enter cost and the required profit margin to calculate selling price, profit per unit and markup on cost.
- Sale price
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- Profit in the unit
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- Cost-plus ratio
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Difference Between Margin and Addition
Profit margin = Profit ÷ Sale price. Addition ratio = Profit ÷ Cost. Adding 25% on cost gives a margin of only 20%, not 25%.
Sell price of margin
Sale price = Cost ÷ (1 − Margin). To achieve a margin of 30% on the cost of 70: price = 70 ÷ 0.7 = 100.
Frequently asked questions
What is the right margin for my business?
By activity and competition vary. Monitor your actual margin monthly from the Income statement in MIYAR and compare it to what you’ve charged.