# Margin and markup calculator

> Free margin and markup calculator. Enter cost and price to get margin, markup and profit per unit, or the price you need for a target margin.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/margin-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.

## 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%.

## 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

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 as in the example.

| Selling price | Margin | Profit per unit |
| --- | --- | --- |
| USD 30 | 20% | USD 6 |
| USD 45 | 46.7% | USD 21 |
| USD 60 (example) | 60% | USD 36 |
| USD 75 | 68% | USD 51 |
| USD 90 | 73.3% | USD 66 |

## 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.

## Questions

**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.

## 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 reads 2 of these 3 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/margin-markup-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools