# Margin Calculator

> Find the selling price that gives a target gross margin on your cost, with the profit per unit and the equivalent markup percentage.

Category: Business & tax · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/margin-calculator

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.

## Inputs
- Cost per unit (default 60)
- Target gross margin (unit %; default 40)
- Currency

## Results
- Selling price
- Gross profit per unit
- Equivalent markup on cost

## Formula

```
Price = Cost ÷ (1 − Margin);  Profit = Price − Cost;  Markup = Margin ÷ (1 − Margin)
```

Where:
- Cost: cost per unit
- Margin: target gross margin as a decimal (profit ÷ price)

## Worked example
1. Price = 60 ÷ (1 − 0.40) = 60 ÷ 0.60 = $100.
2. Profit = 100 − 60 = $40, which is 40% of the $100 price.
3. Markup = 40 ÷ 60 = 66.67% of cost.

**Result:** To earn a 40% margin on an item costing $60, sell it for $100.

## What the result means

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 and limits
- Cost is the full cost of one unit that you want covered by the margin.
- This is gross margin: overheads, tax and payment fees are not included unless you add them to the cost.

## Questions

### What markup gives a 30% margin?

Markup = 0.30 ÷ 0.70 = 42.86%. A $70 cost marked up 42.86% sells for $100, a 30% margin.

### Can a margin be 100%?

Only if the cost is zero. As the margin approaches 100%, the required price grows without limit.

## Related calculators
- [Profit Margin Calculator](https://calculators.geekmidst.com/calculators/profit-margin-calculator)
- [Markup Calculator](https://calculators.geekmidst.com/calculators/markup-calculator)
- [Discount Calculator](https://calculators.geekmidst.com/calculators/discount-calculator)
- [Break-even Calculator](https://calculators.geekmidst.com/calculators/break-even-calculator)
- [Carton Quote Margin Calculator](https://calculators.geekmidst.com/calculators/carton-quote-margin-calculator)

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/margin-calculator