{
    "name": "Margin Calculator",
    "url": "https://calculators.geekmidst.com/calculators/margin-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/margin-calculator.md",
    "category": "Business & tax",
    "description": "Find the selling price that gives a target gross margin on your cost, with the profit per unit and the equivalent markup percentage.",
    "summary": "To hit a target margin, divide the cost by (1 − margin). Adding the margin percentage to the cost is a common mistake that gives a lower margin than you wanted.",
    "also_called": [
        "Target margin calculator",
        "Margin pricing calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "cost",
            "label": "Cost per unit",
            "type": "number",
            "default": "60"
        },
        {
            "name": "margin",
            "label": "Target gross margin",
            "type": "number",
            "default": "40",
            "unit": "%"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "price",
            "label": "Selling price",
            "format": "currency"
        },
        {
            "key": "profit",
            "label": "Gross profit per unit",
            "format": "currency"
        },
        {
            "key": "markup",
            "label": "Equivalent markup on cost",
            "format": "percent"
        }
    ],
    "formula": {
        "text": "Price = Cost ÷ (1 − Margin);  Profit = Price − Cost;  Markup = Margin ÷ (1 − Margin)",
        "variables": {
            "Cost": "cost per unit",
            "Margin": "target gross margin as a decimal (profit ÷ price)"
        }
    },
    "worked_example": {
        "inputs": {
            "cost": "60",
            "margin": "40",
            "currency": "USD"
        },
        "steps": [
            "Price = 60 ÷ (1 − 0.40) = 60 ÷ 0.60 = $100.",
            "Profit = 100 − 60 = $40, which is 40% of the $100 price.",
            "Markup = 40 ÷ 60 = 66.67% of cost."
        ],
        "result": "To earn a 40% margin on an item costing $60, sell it for $100."
    },
    "interpretation": "Margin is profit as a share of the price; markup is profit as a share of cost. The same $40 profit is a 40% margin but a 66.67% markup. Adding 40% to $60 gives $84, which is only a 28.6% margin.",
    "assumptions": [
        "Cost is the full cost of one unit that you want covered by the margin."
    ],
    "limitations": [
        "This is gross margin: overheads, tax and payment fees are not included unless you add them to the cost."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "What markup gives a 30% margin?",
            "answer": "Markup = 0.30 ÷ 0.70 = 42.86%. A $70 cost marked up 42.86% sells for $100, a 30% margin."
        },
        {
            "question": "Can a margin be 100%?",
            "answer": "Only if the cost is zero. As the margin approaches 100%, the required price grows without limit."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Profit Margin Calculator",
            "url": "https://calculators.geekmidst.com/calculators/profit-margin-calculator"
        },
        {
            "name": "Markup Calculator",
            "url": "https://calculators.geekmidst.com/calculators/markup-calculator"
        },
        {
            "name": "Discount Calculator",
            "url": "https://calculators.geekmidst.com/calculators/discount-calculator"
        },
        {
            "name": "Break-even Calculator",
            "url": "https://calculators.geekmidst.com/calculators/break-even-calculator"
        },
        {
            "name": "Carton Quote Margin Calculator",
            "url": "https://calculators.geekmidst.com/calculators/carton-quote-margin-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}