TOOLOG / WEB UTILITY
Profit Margin Calculator | Cost Ratio, Markup & Target Price
Calculate cost ratio, profit margin, profit, markup, and the minimum selling price for a target margin. Includes loss warnings, examples, and clear formulas.
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Use the same tax basis for sales and cost. Target price is rounded up to the next whole currency unit so it does not fall below the selected margin.
Enter sales and cost to calculate cost ratio, margin, profit, and markup.
Profit margin and cost ratio calculator
Use this calculator when setting a product, menu, or service price or reviewing a sale. Enter sales and cost to see profit, cost ratio, profit margin, and markup on cost. Add an optional target margin to calculate the minimum selling price, and get a clear warning when the current price produces a loss.
Key features
- Real-time profit, cost ratio, profit margin, and markup calculations
- A whole-currency minimum selling price for a 0% to 99.9% target margin
- Clear guidance for missing values, negative values, out-of-range targets, and excessively large amounts
- Retail and loss examples, clear-all action, and a copyable result summary
Formulas and input assumptions
- Profit = sales - cost
- Cost ratio = cost ÷ sales × 100
- Profit margin = profit ÷ sales × 100
- Markup = profit ÷ cost × 100 (not calculated when cost is zero)
- Target price = cost ÷ (1 - target margin)
Include any variable costs that matter to your pricing decision, such as packaging or marketplace fees. Keep sales and cost on the same VAT basis. The target price is rounded up to a whole currency unit so the selected margin is not understated; it remains an estimate rather than accounting or tax advice.
How to use it
- Enter the current selling price and total cost.
- Optionally enter a target margin from 0% to 99.9%.
- Review profit or loss, ratios, markup, and target price, then copy the summary.
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Frequently asked questions
What’s the difference between cost ratio and margin ratio?
Cost ratio divides cost by sales; margin divides profit by sales. When cost is the only deduction, the two percentages add up to 100%.
How do I calculate a selling price for a 30% target margin?
Use selling price = cost ÷ (1 - 0.30). For example, a cost of 70 requires a minimum selling price of 100.
Why are profit margin and markup different?
Their denominators differ. With sales of 100 and cost of 70, profit is 30, margin is 30%, and markup is about 42.86%.
Can I enter VAT-included prices?
Yes. Use the same basis for both sales and cost—either both VAT-included or both VAT-excluded.