Margin and markup calculator
Margin and markup use the same two numbers and give different answers. Enter your cost and price to see both, plus the price you need to hit a target margin.
Example numbers. Replace them with yours.
- Margin
- 60%
- Profit per unit
- USD 36
- Markup
- 150%
- Price for your target margin
- USD 48
- Max cost at your target margin
- USD 30
What it calculates
Margin is the share of the selling price you keep after product cost. Markup is how much you add on top of cost. A product that costs 40 and sells for 100 has a 60% margin and a 150% markup. Mixing them up is one of the most common pricing mistakes: pricing at a 50% markup gives you a 33% margin, not 50%.
How to read the result
Use margin when you talk about profit and ad budgets: break-even ROAS is 1 ÷ margin. Use markup when you set prices from cost, but check the margin it gives you. This margin covers product cost only. Shipping, fees and ads come out of it next, so use the contribution margin calculator before setting an ad budget.
Learn the metric:Gross margin
The formula
Margin = (Price − Cost) ÷ Price Markup = (Price − Cost) ÷ Cost Price for a target margin = Cost ÷ (1 − margin) Max cost at a target margin = Price × (1 − margin)
Worked example
Example inputs
- Product cost
- USD 24
- Selling price
- USD 60
- Target margin
- 50%
Results
- Margin
- 60%
- Profit per unit
- USD 36
- Markup
- 150%
- Price for your target margin
- USD 48
- Max cost at your target margin
- USD 30
What changes the result
Selling price at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Selling price | Margin | Profit per unit |
|---|---|---|
| USD 30 | 20% | USD 6 |
| USD 45 | 46.7% | USD 21 |
| USD 60 | 60% | USD 36 |
| USD 75 | 68% | USD 51 |
| USD 90 | 73.3% | USD 66 |
Use your real numbers
Analify reads selling prices and product costs (COGS) from Shopify and shows margin per product, next to what ads, shipping and returns take from it.
Analify already reads 2 of these 3 inputs live, from Shopify
Start freeQuestions
What is the difference between margin and markup?
Margin divides profit by the selling price. Markup divides profit by the cost. The same product always has a higher markup than margin, so a 100% markup is a 50% margin.
How do I convert markup to margin?
Margin = Markup ÷ (1 + Markup). A 50% markup is 0.5 ÷ 1.5 = 33.3% margin.
What margin do I need to run ads?
Your margin sets your break-even ROAS: 1 ÷ margin. At a 40% margin you need 2.5× ROAS just to cover product cost, before shipping, fees and returns.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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