Margin Calculator
Know any two of cost, selling price and margin? kivi works out the rest, by margin or by markup.
- Profit per unit
- $60.00
- Markup
- 150%
Save time, just kivi it.
How to use the margin calculator
- Choose what you want to find: margin, selling price or cost.
- Choose whether your percentage is a margin or a markup.
- Enter the two numbers you know. The rest is calculated as you type.
Margin formula
Margin is always measured against the selling price, so it can never exceed 100%. Markup is measured against cost and has no upper limit.
Example
A product costs 40 and sells for 100. Profit is 60. Gross margin is 60 ÷ 100 = 60%. Markup is 60 ÷ 40 = 150%.
Margin vs markup: what's the difference?
Both describe the same profit, but from different starting points. Margin divides profit by the selling price; markup divides it by cost. A 50% markup gives only a 33.3% margin, which is why mixing the two up is one of the most common pricing mistakes.
What is a good profit margin?
It depends on your category and model. Many ecommerce brands aim for a gross margin of 50–70% to cover ads, shipping and returns, while wholesale and distribution businesses often run at 20–40% on higher volume. Use your own fixed and marketing costs to decide your floor.
Frequently asked questions
How do I calculate profit margin?
Subtract cost from selling price to get profit, then divide profit by the selling price and multiply by 100.
Is margin the same as markup?
No. Margin is profit as a share of price; markup is profit as a share of cost. The same sale always shows a higher markup than margin.
Should I include shipping and fees in cost?
Yes, for a true picture. Include freight, duty, packaging and payment or marketplace fees in your cost to see your real margin.
Can margin be over 100%?
No. Margin is capped below 100% because profit can never exceed the selling price. Markup, however, can be any size.
Does this calculator work with my currency?
Yes. Pick any currency at the top of the page. The math is the same in every currency.
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